2024-07-30 22:41:15
Mixed trends also prevailed in today’s session at Wall Street with the S&P 500 posting losses as major technology companies fell, awaiting second-quarter results after the market closed. Of course, all eyes are on Washington, as the Federal Reserve has already begun its two-day meeting.
THE S&P 500 fell 0.5% closing at 5,436.44 units, while o Nasdaq closed with losses of 1.28% at 17,147.42 units. THE Dow Jones rose 203.40 points or 0.5% to 40,743.33 points.
Nvidia’s stock fell more than 7%, while Microsoft’s fell 0.7%. Other big names from the tech industry also fell, including Amazon, Netflix and Apple.
This is a very important week for big tech results. Microsoft is expected to report results after the Wall Street close. Meta, Amazon and Apple will announce their results on Wednesday and Thursday.
So far, the corporate results period has proven strong. Of the more than 230 S&P 500 stocks that have reported results, 80% have beaten analysts’ expectations, according to FactSet data.
“We see the rate of earnings growth widening. When it comes to the profitability of technology companies, the bar is very high. If there is any disappointment in AI investment, we will see stocks pull back. And we are ready for a market correction,” says Mona Mahajan, strategist at Edward Jones.
At tomorrow’s Fed meeting, investors are hoping that Chairman Jerome Powell will signal the timing and number of interest rate cuts expected in the coming months. Traders give a 100% chance of a rate cut in September.
CrowdStrike’s stock has fallen about 10% since Delta Airlines hired attorney David Boyes to seek compensation from the technical problem caused by the cybersecurity company’s systems. CrowdStrike stock has fallen more than 40% in July, its worst monthly performance ever.
Merck fell 10% as a weakened outlook for the company overshadowed strong second-quarter results. Procter & Gamble lost 4.8% after revenue fell more than expected due to sluggish demand in China.