Nasdaq, S&P 500 Add To Yesterday’s Steep Losses
18 Julho 2024 - 5:40PM
IH Market News
Stocks showed a lack of direction in early trading on Thursday
before coming under considerable selling pressure over the course
of the session. With the downward move, the Nasdaq and the S&P
500 added to the steep losses posted in the previous session.
The major averages all finished the day firmly in negative
territory. The Dow (DOWI:DJI) tumbled 533.06 points or 1.3 percent
to 40,665.02, the Nasdaq (NASDAQI:COMP) fell 125.70 points or 0.7
percent to 17,871.22 and the S&P 500 (SPI:SP500) slid 43.68
points or 0.8 percent to 5,544.59.
The weakness on Wall Street partly reflected concerns about the
near-term outlook for the markets following the tech sell-off on
Wednesday.
The tech-heavy Nasdaq record its worst day since December 2022
after a report from Bloomberg said President Joe Biden’s
administration is considering tougher trade rules against companies
in its chip crackdown on China.
Bloomberg said the administration has told allies that it’s
considering using the most severe trade restrictions available if
companies continue giving China access to advanced semiconductor
technology.
“Geopolitical tensions have acted as a stark reminder to
investors that even the hottest of all investment trends can meet
bumps in the road,” said Dan Coatsworth, investment analyst at AJ
Bell.
“While the news flow from chip-related companies has been solid,
the market seems a bit more nervous than usual,” he added. “Early
strength in the tech sector on Thursday quickly faded away, leaving
investors wondering if we’re now heading towards a full-blown
correction in the sector.”
In U.S. economic news, the Labor Department released a report
showing first-time claims for U.S. unemployment benefits climbed by
much more than expected in the week ended July 13th.
The Labor Department said initial jobless claims rose to
243,000, an increase of 20,000 from the previous week’s revised
level of 223,000.
Economists had expected initial jobless claims to edge up to
230,000 from the 222,000 originally reported for the previous
week.
Meanwhile, The Federal Reserve Bank of Philadelphia released a
separate report showing growth by regional manufacturing was more
widespread in the month of July.
The Philly Fed said its diffusion index for current general
activity jumped to 13.9 in July from 1.3 in June, with a positive
reading indicating growth. Economists had expected the index to
inch up to 2.9.
The report said most future activity indicators also rose,
suggesting more widespread expectations for overall growth over the
next six months.
The Conference Board also released a report showing a modest
decrease by its reading on leading U.S. economic indicators in the
month of June.
The report said the leading economic index edged down by 0.2
percent in June after falling by a revised 0.4 percent in May.
Economists had expected the leading economic index to dip by 0.3
percent compared to the 0.5 percent decline originally reported for
the previous month.
Sector News
Airline stocks moved sharply lower over the course of the
session, resulting in a 3.8 percent nosedive by the NYSE Arca
Airline Index.
Substantial weakness was also visible among pharmaceutical
stocks, as reflected by the 3.1 percent slump by the NYSE Arca
Pharmaceutical Index.
Computer hardware and software stocks also saw considerable
weakness, contributing to the continued decline by the tech-heavy
Nasdaq.
Healthcare, banking and gold stocks also moved notably lower on
the day, while housing stocks turned in a strong performance, with
the Philadelphia Housing Sector Index jumping by 2.1 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific
region turned in a mixed performance during trading on Thursday.
Japan’s Nikkei 225 Index plunged by 2.4 percent, while China’s
Shanghai Composite Index climbed by 0.5 percent.
The major European markets also ended the day mixed. While the
German DAX Index fell by 0.5 percent, the U.K.’s FTSE 100 Index and
the French CAC 40 Index both rose by 0.2 percent.
In the bond market, treasuries gave back ground after moving
higher over the course of the previous session. Subsequently, the
yield on the benchmark ten-year note, which moves opposite of its
price, climbed 4.3 basis points to 4.189 percent.
Looking Ahead
Amid a lack of major U.S. economic data, trading on Friday may
be impacted by reaction to the latest corporate earnings news.
Netflix (NASDAQ:NFLX) is among the companies releasing their
quarterly results after the close of today’s trading, while
American Express (AXP) is among the companies releasing their
quarterly results before the start of trading on Friday.
SOURCE: RTTNEWS
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