2024-07-17 21:20:18
The indices retreated S&P 500 and Nasdaq in today’s session as investors turn from tech stocks to other sectors more sensitive to interest rate cuts.
THE S&P 500 recorded losses of 1.39%, closing at 5,588.27 units, while o Νasdaq it fell 2.77% to 17,996.92, its worst session since December 2022 and closing below 18,000 for the first time since July 1. Accordingly, the index that tracks the “Seven Leading Technologies” showed losses of 3.4%.
Wall Street’s VIX index, which tracks investor fear, jumped to its highest level since early May.
On the contrary, the Dow Jones continued higher, up 243.60 points, or 0.6%, thanks to UnitedHealth’s 4% gain, after it was upgraded in the wake of its strong quarterly results. It closed at 41,198.08 points – the first time it has closed above the 41,000-point barrier.
In fact, it is the first time since 2001 that the Nasdaq has lost more than 2.5%, while the Dow has recorded gains.
Information technology and communications were the worst performing sectors in the S&P 500. Meta fell about 6%, while tech bigs Netflix and Microsoft fell more than 1% and Apple 2.5%.
The semiconductor industry also came under intense pressure after a Bloomberg report that the Biden administration is considering tougher trade restrictions if companies continue to offer China access to American advanced technology. Nvidia stock and US-listed Taiwan Semiconductor shares sank more than 6% and 7% respectively.
The Russell 2000 index of small-cap stocks fell 1%, ending a five-session rally. But then again, the index has rallied about 9% over the past five sessions as the market’s rally has extended. On the other hand, over the same period, the Nasdaq has fallen more than 3% over the same period.