Last Updated: 4:10 PM EST
Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.93%, 0.71%, and 0.93%, respectively. It appears that investors are continuing to rotate out of the tech sector’s (XLK) megacaps, which have been very hot for most of 2024. Interestingly, investors seemed to have moved into the healthcare (XLV) and utilities (XLU), as they were the only ones in the green today.
Furthermore, the U.S. 10-Year Treasury yield increased to 4.24%, while the Two-Year Treasury yield jumped to 4.51%. As a result, the yield curve remains inverted despite investor optimism for a rate cut. In fact, the market is pricing in a 93.54% chance of a rate in September, which is up from 90.3% a week ago.
First Published: 2:52 AM EST
U.S. futures were steady on Friday morning following a broad market decline triggered by a tech-heavy sell-off. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.39%, 0.21%, and 0.07%, respectively, at 2:26 a.m. EST, July 19.
The Dow Jones index declined by 1.3% on Thursday, after closing at record highs for two consecutive days. Further losses were seen in the broader market, with the S&P 500 and the Nasdaq Composite indices dropping 0.8% and 0.7%, respectively.
In major stock market news, Domino’s Pizza (DPZ) shares plunged 13.5% after reporting lower-than-expected Q2 revenue and a weak outlook. Also, Eli Lilly (LLY) saw a 6.3% drop after its Swiss competitor Roche (RHHBY) released positive early-stage data for an experimental oral weight-loss treatment. On the other hand, D.R. Horton’s (DHI) stock surged over 10% after the company exceeded analyst expectations for revenue and earnings in Q3.
Importantly, investors are likely to get an insight into the health of the consumer and the financial sector with the earnings reports scheduled for release today. Several companies, such as American Express (AXP), Travelers (TRV), Comerica (CMA), Huntington Bancshares (HBAN), and Fifth Third (FITB), will report their quarterly numbers before the market opens.
Meanwhile, the U.S. 10-year treasury yield was up at the time of writing, floating near 4.20%. At the same time, WTI crude oil futures trended lower, hovering near $82.22 per barrel as of the last check.
Asia Pacific Markets Traded Lower on Friday
Most of the Asia-Pacific indices traded lower today. The negative sentiment stemmed from weaknesses in major technology companies. Also, Japan’s core inflation data for June raised concerns among investors that the Bank of Japan might increase interest rates later this month.
At the time of writing, Hong Kong’s Hang Seng and China’s Shanghai Composite indices were down 1.97% and 0.08%, respectively. At the same time, Japan’s Nikkei and Topix indices traded lower by 0.2% and 0.34%, respectively. However, China’s Shenzhen Component Index was up 0.32%.
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