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  • U.S. Stock Market Slides as Tech Shares Retreat and Investors Await Nvidia Earnings

    U.S. Stock Market Slides as Tech Shares Retreat and Investors Await Nvidia Earnings

    U.S. stock markets pulled back on Tuesday as declining technology shares dragged major indexes further away from their recent record highs, while investors closely monitored rising global uncertainties and awaited Nvidia’s highly anticipated earnings report.

    The S&P 500 fell 0.5 percent, marking its third consecutive decline after recently reaching an all-time high. The Dow Jones Industrial Average dropped nearly 400 points, or 0.8 percent, while the Nasdaq Composite slipped 0.6 percent in early trading.

    Technology stocks, which have fueled much of Wall Street’s rally through enthusiasm surrounding artificial intelligence, showed signs of slowing after months of rapid gains. Analysts have increasingly warned that some tech companies may have become overvalued amid the AI investment boom.

    Investor attention is now focused on Nvidia, the semiconductor giant at the center of the AI surge, which is scheduled to release its latest quarterly earnings on Wednesday. Nvidia has consistently exceeded Wall Street expectations in recent quarters and delivered strong growth forecasts that helped drive broader market optimism. Shares of Nvidia dipped 0.7 percent ahead of the report.

    Global markets also showed mixed performance. South Korea’s Kospi index plunged 3.3 percent as tech stocks weakened across Asia, while Germany’s DAX index gained one percent, making it one of the strongest-performing markets of the day.

    Market uncertainty continues to be fueled by geopolitical tensions and rising bond yields. Investors remain concerned about the ongoing Iran conflict and the potential disruption of oil shipments through the Strait of Hormuz, one of the world’s most critical energy trade routes.

    In the bond market, Treasury yields climbed again, with the 10-year Treasury yield rising to 4.66 percent from 4.61 percent a day earlier. Yields have risen sharply since the Iran conflict began, adding pressure to global borrowing costs and financial markets.

    Oil prices, meanwhile, eased slightly after weeks of volatile swings. Brent crude fell 0.7 percent to $111.39 per barrel, although prices remain significantly elevated compared to pre-conflict levels around $70 per barrel.

    Higher energy costs are also affecting consumers across the United States. According to AAA, the average price of gasoline rose to $4.53 per gallon, approximately 43 percent higher than the same period last year.

    Among notable corporate movers, Akamai Technologies fell 3.9 percent after announcing plans to raise $2.6 billion through a convertible note offering. Home Depot shares also declined 2.2 percent despite posting quarterly earnings that slightly beat analyst forecasts. The retailer cited continued consumer uncertainty and ongoing housing affordability challenges impacting demand.

    Despite the recent market pullback, many major U.S. corporations have continued reporting stronger-than-expected profits, supported by resilient consumer spending even amid inflationary pressures and rising fuel costs.

  • Stock Market Update: S&P 500, Nasdaq Dip as Inflation Progress Falters

    Stock Market Update: S&P 500, Nasdaq Dip as Inflation Progress Falters

    US stock markets faced a setback on Wednesday, with key indices retreating after fresh data suggested inflation remains stubbornly high, challenging the Federal Reserve’s efforts to hit its 2% target.

    The S&P 500 (^GSPC) dropped 0.4%, while the Dow Jones Industrial Average (^DJI) slid 0.3%. The Nasdaq Composite (^IXIC), led by losses in tech stocks, declined by 0.6%. This follows Tuesday’s record highs, dampening investor sentiment ahead of the Thanksgiving holiday, when markets will close Thursday and have shortened trading hours on Friday.

    Inflation Data Raises Concerns

    The Federal Reserve’s preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) index, showed modest growth in October. Core PCE, which excludes volatile food and energy prices, rose 0.3% month-over-month, aligning with Wall Street expectations. Annually, core prices increased by 2.8%, slightly above September’s 2.7%.

    This flat progress in inflation control has raised questions about the Fed’s next move. Current market forecasts, based on the CME FedWatch Tool, indicate a 34% probability that the Fed will hold interest rates steady at its upcoming meeting—a notable increase from 24% a month earlier.

    Broader Economic Indicators

    Additional economic reports released Wednesday painted a mixed picture. The second estimate for third-quarter GDP remained unchanged, showing a 2.8% annualized growth rate. Meanwhile, the labor market showed resilience, with weekly jobless claims dropping to 213,000 from the prior week’s 215,000—indicating continued strength in employment.

    Corporate and Trade Developments

    In corporate news, Dell Technologies (DELL) shares plunged over 12% after quarterly revenue missed expectations, reflecting weak PC demand. Similarly, HP (HPQ) suffered an 11% loss post-earnings, compounding concerns in the tech hardware sector.

    On the trade front, President-elect Donald Trump appointed Jamieson Greer as the new US Trade Representative. Greer, a key figure in Trump’s first-term China tariff policies, has sparked speculation about the administration’s approach to future trade agreements and tariffs on top US trading partners.

    Outlook

    As markets enter a holiday-shortened week, investors are cautiously navigating a mix of economic signals and corporate challenges. Persistent inflation and trade policy uncertainties remain key themes that could shape market direction in the coming weeks.

    For updates on the stock market and economic trends, stay tuned to our blog.

    Source : Swifteradio.com

  • Asian Stock Markets Mixed Following Wall Street’s New Record Highs – The Associated Press

    Asian Stock Markets Mixed Following Wall Street’s New Record Highs – The Associated Press

    Currency traders pass by a screen displaying the Korea Composite Stock Price Index (KOSPI) and the exchange rate between the U.S. dollar and South Korean won at the KEB Hana Bank headquarters’ foreign exchange dealing room in Seoul, South Korea, on Wednesday, June 19, 2024. (AP Photo/Ahn Young-joon)

    Currency traders monitor screens near a display showing the KOSPI and the exchange rate between the U.S. dollar and South Korean won at the KEB Hana Bank headquarters’ foreign exchange dealing room in Seoul, South Korea, on Wednesday, June 19, 2024. (AP Photo/Ahn Young-joon)

    The New York Stock Exchange is seen on Tuesday, June 18, 2024, in New York. Shares mostly rose in Europe and Asia after U.S. stocks hit new records, driven by gains in technology companies. (AP Photo/Peter Morgan)

    Asian markets were mixed on Wednesday following U.S. benchmarks setting more records amid signs of a slowing U.S. economy that hasn’t yet fallen into recession. U.S. futures were mixed, and oil prices remained steady.

    In Tokyo, the Nikkei 225 index increased by 0.2% to 38,575.54, as Japan’s May trade data showed a 13.5% rise in exports and a 9.5% increase in imports compared to the previous year, driven by higher prices and a weaker yen. Minutes from the Bank of Japan’s latest policy meeting revealed discussions about whether the yen’s weakness could drive inflation higher, with Governor Kazuo Ueda hinting at a potential rate hike depending on economic data.

    The Hang Seng in Hong Kong rose 2% to 18,264.51, while the Shanghai Composite index fell 0.3% to 3,020.03 after China’s securities regulator announced plans to enhance oversight of financial activities to mitigate risks. In Sydney, the S&P/ASX 200 dipped 0.2% to 7,764.30. South Korea’s Kospi surged 1% to 2,792.14. Taiwan’s Taiex climbed 1.8%, while Bangkok’s SET decreased by 0.1%.

    On Tuesday, the S&P 500 gained 0.3% to 5,487.03, marking its 31st record high this year. The Nasdaq composite rose by less than 0.1% to 17,862.23, and the Dow Jones Industrial Average increased by 0.2% to 38,834.86.

    Nvidia continued to be a standout performer, with its shares rising 3.5%, contributing significantly to the S&P 500’s gains. Nvidia’s chips are key in AI development, with demand skyrocketing, leading to tripling revenues each quarter and soaring profits. Its stock has surged nearly 174% this year, accounting for almost a third of the S&P 500’s gains through May. However, the heavy reliance on a few top performers could indicate a fragile market.

    Retail sales in May rose by 0.1%, below expectations, with April sales revised downward by 0.2%. March and February saw rises of 0.6% and 0.9%, respectively, while January sales fell by 1.1% due to adverse weather. The weaker data might suggest cracks in household spending, the main driver of the U.S. economy, as inflation remains high, particularly affecting lower-income households.

    Despite this, a Bank of America survey showed global fund managers’ optimism at its highest since autumn 2021, with significant stock allocations and less cash hoarding, and fewer predictions of a severe recession.

    In early Wednesday trading, U.S. benchmark crude oil remained steady at $80.71 per barrel, while Brent crude rose slightly to $85.35 per barrel. The dollar strengthened to 157.87 Japanese yen from 156.87 yen, and the euro slightly declined to $1.0737 from $1.0740.

    AP Business Writer Stan Choe contributed to this report.

    source: apnews.com