Top Investing Today
  • Investing
  • Politics
  • Stock
  • Economy
  • Editor’s Pick
  • Investing
  • Politics
  • Stock
  • Economy
  • Editor’s Pick
No Result
View All Result
Top Investing Today
No Result
View All Result
Home Editor's Pick

US stocks tumble amid weak economic data: What went wrong?

BoldThemes by BoldThemes
August 1, 2024
in Editor's Pick
0
US stocks tumble amid weak economic data: What went wrong?
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter
midterm election U.S. stock market

US stocks faced significant selling pressure Thursday afternoon, driven by disappointing economic data and a sharp decline in chip stocks. This led to losses across all three major indexes, following the Federal Reserve’s indication of a likely rate cut in September.

The S&P 500 declined nearly 1.5%, and the Nasdaq Composite reversed its earlier gains, falling almost 2.5% after a strong close on Wednesday. The Dow Jones Industrial Average saw a drop of nearly 600 points, or 1.4%.

If this trend continues, it could mark the worst day of the year for the market.

Entering the week, investors were closely monitoring Big Tech earnings. 

Microsoft and AMD kicked off the announcements with decent earnings reports. 

Despite a slowdown in growth for Microsoft, the company’s commitment to AI spending provided some optimism. 

META followed with impressive results, keeping its stock up 5% despite the broader market crash.

However, the tech sector did not perform as poorly as anticipated. So, what is causing the market turmoil?

What’s causing the crash?

The latest economic data released today reignited fears of a recession. Jobless claims surged the most since August last year, compounding concerns when the ISM Manufacturing Index reported a disappointing 46.8%, indicating economic contraction. 

This spooked investors, pushing the 10-year Treasury yield below 4%.

Federal Reserve Chair Jerome Powell’s recent announcement that interest rates would remain unchanged, with a potential rate cut in the near future, also contributed to market anxiety. Investors now fear the Fed may have misjudged the economic situation.

Economic data continues to point towards a downturn, if not a full-blown recession. The stock market is in a state of confusion as it grapples with the possibility of three Fed rate cuts this year and 10-year bond yields falling below 4.00%.

“The winds of recession are blowing hard,” said Chris Rupkey, Economist. “The stock market doesn’t know whether to laugh or cry.”

Should investors be worried?

It is challenging to determine whether this situation resembles a recession or the dot-com bubble. 

Tech stocks have been pivotal in elevating the market, but their high valuations have always been justified by their performance. 

However, there is a growing sentiment that tech stocks cannot sustain their previous year’s momentum indefinitely.

“There is an implicit expectation of lower performance from megacaps now than in 2000,” stated GMO portfolio managers. “In a real sense, the stakes are lower today.”

While high tech valuations are not the primary cause of the current market crash, poor earnings from tech companies could exacerbate the situation. Apple is set to announce its quarterly earnings after market close today, and a disappointing performance could complicate matters further.

The post US stocks tumble amid weak economic data: What went wrong? appeared first on Invezz

Previous Post

Soaring popularity of Vance’s ‘Hillbilly Elegy’ rebuts narrative that Trump VP pick is floundering

Next Post

Small Caps Poised to Soar: Is Now The Time To Buy IWM?

BoldThemes

BoldThemes

Next Post
Small Caps Poised to Soar: Is Now The Time To Buy IWM?

Small Caps Poised to Soar: Is Now The Time To Buy IWM?

  • Trending
  • Comments
  • Latest
The Connectivity Standards Alliance Product Security Working Group Launches the IoT Device Security Specification 1.0

The Connectivity Standards Alliance Product Security Working Group Launches the IoT Device Security Specification 1.0

March 19, 2024
Israel says UN ‘deceiving’ world over aid delays to Gaza

Israel says UN ‘deceiving’ world over aid delays to Gaza

March 28, 2024
Gold and Silver Set to Smash Records: Could 2024 Be Their Biggest Year Yet?

Gold and Silver Set to Smash Records: Could 2024 Be Their Biggest Year Yet?

May 17, 2024
Conservative backlash to Israel aid bill could force Johnson to seek Democrat support again

Conservative backlash to Israel aid bill could force Johnson to seek Democrat support again

February 6, 2024

Foreign nationals charged amid Trump visa crackdown for scheme to smuggle US military equipment into China

0
Amid growing criticism of Biden foreign policy, experts credit wins while leaving room for improvement

Amid growing criticism of Biden foreign policy, experts credit wins while leaving room for improvement

0
Conservative backlash to Israel aid bill could force Johnson to seek Democrat support again

Conservative backlash to Israel aid bill could force Johnson to seek Democrat support again

0
Precision Manufacturing For Sensitive Equipment With CNC Machining

Precision Manufacturing For Sensitive Equipment With CNC Machining

0

Foreign nationals charged amid Trump visa crackdown for scheme to smuggle US military equipment into China

June 2, 2025

SCOOP: House Freedom Caucus draws battle lines as White House readies $9.4B DOGE spending cuts

June 2, 2025

Tariff fight escalates as Trump appeals second court loss

June 2, 2025
Hedge Market Volatility with These Dividend Aristocrats & Sector Leaders

Hedge Market Volatility with These Dividend Aristocrats & Sector Leaders

June 2, 2025
Enter Your Information Below To Receive Trading Ideas and Latest News

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    Recent News

    Foreign nationals charged amid Trump visa crackdown for scheme to smuggle US military equipment into China

    June 2, 2025

    SCOOP: House Freedom Caucus draws battle lines as White House readies $9.4B DOGE spending cuts

    June 2, 2025

    Tariff fight escalates as Trump appeals second court loss

    June 2, 2025
    Hedge Market Volatility with These Dividend Aristocrats & Sector Leaders

    Hedge Market Volatility with These Dividend Aristocrats & Sector Leaders

    June 2, 2025
    • About Us
    • Privacy Policy
    • Terms & Conditions
    • Contact

    Copyright © 2024 Topinvestingtoday.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Politics
    • Stock
    • Economy
    • Editor’s Pick

    Copyright © 2024 Topinvestingtoday.com. All Rights Reserved.