NYSE Dow Jones finished today at:

[bigdog]

ASX 200 expected to fall​

The Australian share market looks set to fall on Monday despite a decent finish on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 14 points or 0.2% lower.

Wall Street coasted to the close of its best week since November, as U.S. stocks drifted a bit higher Friday.

The S&P 500 rose 0.2% for a seventh straight gain and pulled back within 2% of its all-time high set last month. The Dow Jones Industrial Average gained 96 points, or 0.2%, and the Nasdaq composite added 0.2%.

All told, the S&P 500 rose 11.03 points to 5,554.25. The Dow gained 96.70 to 40,659.76, and the Nasdaq composite added 37.22 to 17,631.72.

 

[bigdog]

Stock market today: Wall Street climbs to push its winning streak to 8 days, longest of the year

U.S. stocks climbed, and Wall Street pulled closer to its record heights following its roller coaster of a summer.

apnews.com

Wall Street climbs to push its winning streak to 8 days, longest of the year​

By STAN CHOE
Updated 7:09 AM GMT+10, August 20, 2024

NEW YORK (AP) — U.S. stocks climbed Monday as Wall Street pulls closer to its record heights following its roller coaster of a summer.

The S&P 500 rallied 1% for its eighth straight gain. That clinched its longest winning streak since November and followed up on the index’s best week of the year. It’s back to within 1% of its all-time high after falling close to 10% below the mark earlier this month.

The Dow Jones Industrial Average gained 236 points, or 0.6%, and the Nasdaq composite jumped 1.4%.

Advanced Micro Devices helped drive the market after saying it would buy ZT Systems, a supplier in the cloud computing and artificial-intelligence industries, in a cash-and-stock deal valued at $4.9 billion. The chip company’s stock rose 4.5%.

Another chip company, Nvidia, was the single strongest force pushing the S&P 500 upward after it rose 4.4%. It’s clawed back most of its sharp losses from earlier in the summer, which were triggered by worries investors sent its stock price too high amid their frenzy around artificial-intelligence technology.

They helped offset a 4.8% drop for Guess? Inc., which said its chief financial officer is stepping down to pursue another opportunity. The apparel and accessories company said it’s begun a search for its next CFO and appointed an interim.

All told, the S&P 500 rose 54.00 points to 5,608.25. The Dow gained 236.77 to 40,896.53, and the Nasdaq composite jumped 245.05 to 17,876.77.

Trading was quiet elsewhere, including in the bond market. Treasury yields held relatively steady ahead of what’s likely to be financial markets’ main event for the week: a speech on Friday by Federal Reserve Chair Jerome Powell.

The setting for the speech in Jackson Hole, Wyoming, has been home to some big policy announcements by the Fed in the past. Expectations aren’t that high this time around, with nearly everyone already expecting the Fed will begin cutting interest rates next month.

That would be the first such cut since the Fed began hiking rates drastically in early 2022, hoping to slow the economy by enough to stifle inflation but not so much that it causes a recession. With inflation slowing from its peak above 9% two summers ago, Fed officials have already hinted cuts to rates are coming. The biggest question is whether the economy just needs the Federal Reserve to remove the brakes or if it needs more acceleration and deeper cuts.

A surprisingly weak report on hiring by U.S. employers last month raised worries the Fed has already kept interest rates too high for too long. Such worries combined with concerns that Nvidia and other highly influential Big Tech stocks got too expensive amid the AI frenzy, along with other factors, to send markets globally through a scary couple weeks. That included the worst day for Japan’s market since the Black Monday crash of 1987.

But an ensuing assurance from the Bank of Japan on interest rates there has helped calm the market. Several recent reports on the U.S. economy have also come in stronger than expected, covering everything from inflation to sales at U.S. retailers, which bolstered optimism.

This upcoming week doesn’t have as many economic reports on the schedule. A preliminary report on U.S. business activity could be the highlight of the week, arriving on Thursday.

More action will likely come from corporate earnings reports as the reporting season for the spring winds down. Most companies have turned in better profits for the latest quarter than analysts expected, as is usually the case.

With more than 90% of companies in the S&P 500 having already turned in their reports, they’re on track to deliver growth of nearly 11% in earnings per share from a year earlier, according to FactSet. That would be the best growth since the end of 2021.

Retailers dominate the tail end of earnings season, and Lowe’s, Ross Stores, Target and TJX will be among those in the spotlight this week.

A report on Friday suggested U.S consumers are feeling better about the economy than expected, but worries have been high about how much they can continue spending. Those at the lower end of the income spectrum appear to be under particular pressure, with prices still high across the economy despite inflation’s slowdown.

In their commentaries accompanying their earnings reports, CEOs broadly seem to be remaining “in a wait and see loop” amid lingering worries, but there also seems to be confidence in “a pickup when greater macroeconomic and political clarity emerge,” according to Deutsche Bank strategists led by Parag Thatte.

In the bond market, the yield on the 10-year Treasury dipped to 3.87% from 3.88% late Friday.

In stock markets abroad, Japan’s Nikkei 225 dropped 1.8%. It was hurt by a rise in the Japanese yen’s value against the U.S. dollar. Such moves can erode profits for Japanese exporters, and big swings in the yen’s value following a recent hike to interest rates by the Bank of Japan was a big factor in markets’ turmoil earlier this month.

It forced hedge funds around the world to abandon a popular trade en masse, where they had borrowed Japanese yen at cheap rates to invest elsewhere.

On Monday, though, movements in other stock markets outside Tokyo were calmer, with European indexes modestly higher and Asian indexes mixed.

ASX 200 expected to rise again​

The Australian share market is expected to rise again on Tuesday following a positive start to the week on Wall Street.

According to the latest SPI futures, the ASX 200 is poised to open the day 36 points or 0.5% higher.

U.S. stocks climbed Monday as Wall Street pulls closer to its record heights following its roller coaster of a summer.

The S&P 500 rallied 1% for its eighth straight gain. That clinched its longest winning streak since November and followed up on the index’s best week of the year. It’s back to within 1% of its all-time high after falling close to 10% below the mark earlier this month.

The Dow Jones Industrial Average gained 236 points, or 0.6%, and the Nasdaq composite jumped 1.4%.

All told, the S&P 500 rose 54.00 points to 5,608.25. The Dow gained 236.77 to 40,896.53, and the Nasdaq composite jumped 245.05 to 17,876.77.


Market Watch

 

[bigdog]

Stock market today: Wall Street slips and breaks an 8-day winning streak

U.S. stocks ticked lower and snapped an eight-day winning streak, the longest of the year. The S&P 500 slipped 0.2% Tuesday, but it’s still just 1.2% below its all-time high set last month.

apnews.com

Wall Street slips and breaks an 8-day winning streak​

By STAN CHOE
Updated 7:22 AM GMT+10, August 21, 2024

NEW YORK (AP) — U.S. stocks ticked lower Tuesday and snapped an eight-day winning streak, the longest of the year.

The S&P 500 slipped 0.2%, but it’s still just 1.2% below its all-time high set last month. It has roared back from its scary summer drop, where the index briefly dropped nearly 10% below its record.

The Dow Jones Industrial Average fell 61 points, or 0.2%, and the Nasdaq composite slipped 0.3%.

Nvidia was the heaviest weight on the market after falling 2.1%. The chip company is one of Wall Street’s most influential stocks because a frenzy around artificial-intelligence technology has made it one of the U.S. stock market’s most valuable companies at roughly $3 trillion.

Nvidia has recovered most of its summertime swoon, where its stock dropped more than 20% on worries investors went overboard and took its price too high, but it has remained shaky ahead of its earnings report scheduled for next week.

Boeing also weighed on the market after sinking 4.2%.

Federal safety officials are requiring inspections of cockpit seats on Boeing 787 Dreamliners. Boeing also has stopped test flights of a new version of its 777 jetliner after discovering a damaged structural part between the engine and the rest of the plane. The new model has not yet been approved by regulators

Helping to limit the market’s losses was Palo Alto Networks. The cybersecurity company jumped 7.2% after becoming the latest big business to report stronger profit and revenue for the latest quarter than analysts expected. Companies in the S&P 500 are on track to report their best growth in earnings per share since the end of 2021, according to FactSet.

Lowe’s likewise topped analysts’ forecasts for profit in the spring, but its stock was more restrained. The home improvement retailer said it’s facing a challenging economic backdrop, “especially for the homeowner,” and cut its forecasts for revenue and profit this fiscal year. Its stock fell 1.2%.

High interest rates have been weighing on the economy after the Federal Reserve hiked them sharply in order to get inflation under control. On Tuesday, Treasury yields eased ahead of a speech on Friday by Federal Reserve Chair Jerome Powell, one that’s likely to be the week’s highlight for financial markets.

The economic symposium in Jackson Hole, Wyoming, where Powell will be speaking has been home to big policy announcements in the past. Expectations aren’t that high this time around, with nearly everyone already in agreement the Fed will begin cutting interest rates next month.

The biggest question is whether the economy needs the Federal Reserve merely to remove the brakes or if it needs an extra boost requiring deeper and faster cuts.

A surprisingly weak report on hiring by U.S. employers last month raised worries the Fed has already kept interest rates too high for too long, but ensuing data on everything from inflation to sales at U.S. retailers helped bolster optimism.

The yield on the 10-year Treasury fell to 3.81% from 3.87% late Monday.

On Wall Street, the company behind Hawaiian Airlines soared 11.3% after it said its proposed merger with the company behind Alaska Airlines has cleared a major regulatory hurdle. A review period by U.S. antitrust regulators for the deal has passed.

Alaska Air Group’s stock was basically flat.

All told, the S&P 500 slipped 11.13 points to 5,597.12. The Dow dipped 61.56 to 40,834.97, and the Nasdaq fell 59.83 to 17,816.94.

In stock markets abroad, Japan’s Nikkei 225 jumped 1.8% to claw back all of its sharp loss from the day before. Tokyo has been home to some of the world’s most vicious moves for financial markets recently after the Bank of Japan raised interest rates there last month.

That hike triggered losses for markets around the world because it forced many hedge funds to abandon a popular trade all at once, where they had borrowed Japanese yen cheaply and invested it elsewhere. That included the worst day for Japan’s stock market since the Black Monday crash of 1987.

But an ensuing assurance from the Bank of Japan on interest rates has helped calm the market, along with the better-than-expected data on the U.S. economy.

The rebound for U.S. stocks following their scary couple of weeks is another reminder about the danger of trying to time the market. Anyone who sold their stock investments earlier this month when panic was high would have missed the recent eight-day winning streak for the S&P 500.

Historically, the market’s best and worst days tend to be bunched together, “often back-to-back” during recessions or down markets, according to Veronica Willis, global investment strategist at Wells Fargo Investment Institute.

ASX 200 expected to fall​

The Australian share market looks set to end its winning streak on Wednesday following a subdued session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 44 points or 0.6% lower.

U.S. stocks ticked lower Tuesday and snapped an eight-day winning streak, the longest of the year.

The S&P 500 slipped 0.2%, but it’s still just 1.2% below its all-time high set last month. It has roared back from its scary summer drop, where the index briefly dropped nearly 10% below its record.

The Dow Jones Industrial Average fell 61 points, or 0.2%, and the Nasdaq composite slipped 0.3%

All told, the S&P 500 slipped 11.13 points to 5,597.12. The Dow dipped 61.56 to 40,834.97, and the Nasdaq fell 59.83 to 17,816.94.

 

[bigdog]

Stock market today: Wall Street pulls closer to records after retailers top profit forecasts

U.S. stocks ticked higher after more big companies delivered profit reports that topped analysts’ expectations.

apnews.com

Wall Street pulls closer to records after retailers top profit forecasts​

By STAN CHOE
Updated 6:14 AM GMT+10, August 22, 2024

NEW YORK (AP) — U.S. stocks ticked higher Wednesday after more big companies delivered profit reports that topped analysts’ expectations.

The S&P 500 rose 0.4% a day after breaking an eight-day winning streak, its longest of the year. The index is back to within 0.8% of its all-time high set last month.

The Dow Jones Industrial Average added 55 points, or 0.1%, while the Nasdaq composite gained 0.6%.

Treasury yields eased a bit in the bond market as investors wait for the week’s main event, which will arrive Friday. That’s when Federal Reserve Chair Jerome Powell will give a speech at an annual economic symposium. The hope is he’ll offer clues about how deeply and quickly the Fed will begin cutting interest rates next month after it jacked them to a two-decade high to beat inflation.

In the meantime, more companies joined a parade to deliver what looks to be the best growth in profit for S&P 500 companies since late 2021

Target jumped 11.2% after the retailer said an important underlying measure of sales strength for the spring came in at the high end of its expectations, as traffic increased at both its stores and online. Its profit topped analysts’ estimates, and it raised its forecast for the full year.

TJX, the company behind TJ Maxx and Marshalls, rose 6.1% after it likewise reported stronger profit for the latest quarter than expected. The retailer also raised its profit forecast for the full year and said it saw increased customer transactions at all of its divisions.

They helped offset a 12.9% drop for Macy’s. The company reported better profit than analysts expected, but its revenue fell short of forecasts. It also lowered its expected range for sales this year, due in part to “a more discriminating consumer.”

Worries have been growing about whether U.S. shoppers can keep up their spending and keep the slowing economy out of a recession. Inflation is slowing, but prices are nevertheless much higher than before the pandemic, and many U.S. households have burned through the savings they built up during that stay-at-home period.

Concerns have been particularly high for U.S. households at the lower end of the income spectrum. High interest rates instituted by the Federal Reserve have made it more expensive to borrow money, compounding the difficulty.

That’s why the widespread expectation is for the Fed next month to lower its main interest rate for the first time since the COVID crash of 2020. The only question is how much and how quickly it will move.

Most Federal Reserve officials agreed last month that they would likely cut at their next meeting in September, as long as inflation continued to cool, according to minutes of the meeting released Wednesday.

The yield on the 10-year Treasury has been sinking since April on such expectations. It eased a bit further Wednesday, down to 3.79% from 3.81% late Tuesday.

A preliminary revision released by the U.S. government in the morning suggested the economy created 818,000 fewer jobs in the year through March than earlier reported. That’s a big number and adds to evidence showing a cooling job market, though it was smaller than some had feared.

“We have long warned that the jobs numbers were unreliable and subject to dramatic revision,” said Nancy Tengler, chief executive of Laffer Tengler Investments. She suggested focusing on the longer term and said rising U.S. worker productivity is an encouraging signal for the economy.

On Wall Street, coal companies Arch Resources and Consol Energy saw their stocks swing after they said they were combining in an all-stock “merger of equals.” After merging, they plan to go by a new name, Core Natural Resources.

Both their stocks initially jumped following the announcement but regressed as the day progressed. Arch Resources ended the day down 1.9%, while Consol Energy gained 0.9%.

All told, the S&P 500 rose 23.73 points to 5,620.85. The Dow gained 55.52 to 40,890.49, and the Nasdaq composite tacked on 102.05 to 17,918.99.

In stock markets abroad, indexes were mixed. Japan’s Nikkei 225 slipped 0.3%. It was a much more modest move than some of its huge swings in recent weeks, including its worst day since the Black Monday crash of 1987.

ASX 200 expected to rise again​

It looks set to be another positive session for Aussie investors on Thursday following a decent night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 28 points or 0.35% higher this morning.

U.S. stocks ticked higher Wednesday after more big companies delivered profit reports that topped analysts’ expectations.

The S&P 500 rose 0.4% a day after breaking an eight-day winning streak, its longest of the year. The index is back to within 0.8% of its all-time high set last month.

The Dow Jones Industrial Average added 55 points, or 0.1%, while the Nasdaq composite gained 0.6%.

All told, the S&P 500 rose 23.73 points to 5,620.85. The Dow gained 55.52 to 40,890.49, and the Nasdaq composite tacked on 102.05 to 17,918.99.


Market Watch

 

[bigdog]

Stock market today: Wall Street weakens ahead of a highly anticipated speech

U.S. stocks closed lower as Wall Street counted down to its main event for the week, a speech by Federal Reserve Chair Jerome Powell coming up on Friday.

apnews.com

Wall Street weakens ahead of a highly anticipated speech​

By STAN CHOE
Updated 7:12 AM GMT+10, August 23, 2024

NEW YORK (AP) — U.S. stocks weakened Thursday in the run-up to Wall Street’s main event for the week, a speech by Federal Reserve Chair Jerome Powell coming on Friday.

The S&P 500 fell 0.9% for its worst day following a two-week rally. The Dow Jones Industrial Average dropped 177 points, or 0.4%, and the Nasdaq composite sank 1.7%.

Stocks fell as Treasury yields cranked up the pressure in the bond market following some mixed data on the U.S. economy, which has been slowing under the weight of high interest rates meant to get inflation under control.

One report showed slightly more U.S. workers applied for unemployment benefits last week than expected. The number is still low relative to history, but the uptick could signal a job market that continues to cool.

A second report, meanwhile, suggested U.S. business activity remains deeply split. Growth for services businesses is accelerating, according to preliminary data from S&P Global Market Intelligence. But the country’s manufacturing sector appears to be contracting at a more severe rate.

Overall, the data suggested the U.S. economy is still growing but pointed to some fragility.

“Growth has become increasingly dependent on the service sector as manufacturing, which often leads the economic cycle, has fallen into decline,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

The Fed has pulled its main interest rate to the highest level in more than two decades in hopes of restraining the economy enough to stifle inflation but not so much that it causes a recession. With inflation slowing, the wide expectation is for the Federal Reserve to cut interest rates at its next meeting in September, which would be the first easing since the COVID crash of 2020.

That’s why so much attention is on Jackson Hole, Wyoming, where Powell will speak Friday at an economic symposium that’s been home to big Fed policy announcements in the past. The hope is Powell will give clues about how quickly and deeply the Fed may cut rates to ease conditions for the economy.

One danger is if expectations for coming cuts have gone overboard among investors, something that has frequently happened historically. That could make the drop in Treasury yields since the spring overdone. The drop has helped pull mortgage rates lower, which in turn helped sales of previously occupied homes stop a four-month slide in July.

In the meantime, U.S. companies continue to report mostly better-than-expected profits for the springtime.

Internet-connected exercise company Peloton soared 35.4% after it topped sales forecasts and lost less money in the latest quarter than analysts were expecting. It achieved modest revenue growth for the first time in more than two years.

Another winner of the pandemic that saw its fortunes weaken afterward, Zoom Video Communications, also rose following its profit report. It climbed 13% after delivering better results and revenue for the latest quarter than expected.

But more stocks fell on Wall Street than rose, including Nvidia, which was the heaviest single weight on the S&P 500. It erased an early gain to fall 3.7% ahead of its own highly anticipated profit report coming next week.

It was briefly the strongest force pushing upward on the S&P 500 earlier in the day, but its stock has been swinging sharply over the last month amid worries that its price shot too high amid a frenzy around artificial intelligence. Even with Thursday’s loss, Nvidia’s stock is still up 150% for the year so far.

Also on the losing side of Wall Street was Snowflake, which fell 14.7% despite topping analysts’ expectations for profit and revenue in the latest quarter. It gave a forecast for product revenue in the current quarter that fell short of what analysts were estimating.

Advance Auto Parts tumbled 17.5% after its profit for the latest quarter came up short of Wall Street’s expectations. It cited a “challenging demand environment” and cut its forecast for profit over the full year well below what Wall Street was expecting.

All told, the S&P 500 fell 50.21 points to 5,570.64. The Dow dropped 177.71 to 40,712.78, and the Nasdaq lost 299.63 to 17,619.35.

In the bond market, the yield on the 10-year Treasury rose to 3.86% from 3.80% late Wednesday.

In stock markets abroad, indexes made mostly modest moves across Asia and Europe. South Korea’s Kospi rose 0.2% after the Bank of Korea decided at its monetary policy meeting to keep rates unchanged.

Hong Kong’s Hang Seng was an outlier and jumped 1.4%.

ASX 200 expected to fall

The Australian share market looks set to end its winning streak on Friday following a poor session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open 43 points or 0.5% lower this morning.

U.S. stocks weakened Thursday in the run-up to Wall Street’s main event for the week, a speech by Federal Reserve Chair Jerome Powell coming on Friday.

The S&P 500 fell 0.9% for its worst day following a two-week rally. The Dow Jones Industrial Average dropped 177 points, or 0.4%, and the Nasdaq composite sank 1.7%.

All told, the S&P 500 fell 50.21 points to 5,570.64. The Dow dropped 177.71 to 40,712.78, and the Nasdaq lost 299.63 to 17,619.35.

 

[bigdog]

Stock market today: Wall Street rallies near its record heights as 'time has come' for cuts to rates

U.S. stocks rallied closer to their records after the head of the Federal Reserve finally said out loud what Wall Street has been expecting for a while: Cuts to interest rates are coming soon to help the economy.

apnews.com

Wall Street rallies near its record heights as ‘time has come’ for cuts to rates​

By STAN CHOE
Updated 7:18 AM GMT+10, August 24, 2024

NEW YORK (AP) — U.S. stocks rallied close to their records Friday after the head of the Federal Reserve finally said out loud what Wall Street has been expecting for a while: Cuts to interest rates are coming soon to help the economy.

The S&P 500 rose 1.1% after Fed Chair Jerome Powell said in a highly anticipated speech that the time has come to lower its main interest rate from a two-decade high. The index pulled within 0.6% of its all-time high set last month and has clawed back virtually all of its losses from a brief but scary summertime swoon.

The Dow Jones Industrial Average rose 462 points, or 1.1%, to close above the 41,000 level for the first time since it set its own record in July, while the Nasdaq composite jumped 1.5%.

Powell’s speech marked a sharp turnaround for the Fed after it began hiking rates two years ago as inflation spiraled to its worst levels in generations. The Fed’s goal was to make it so expensive for U.S. households and companies to borrow that it slowed the economy and stifled inflation.

While careful to say the task is not complete, Powell used the past tense to describe many of the conditions that sent inflation soaring after the pandemic, including a job market that “is no longer overheated.” That means the Fed can pay more attention to the other of its twin jobs: to protect an economy that’s slowing but has so far defied many predictions for a recession.

“The time has come for policy to adjust,” Powell said. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

“The time has come for policy to adjust,” Powell said. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

That second part of his statement held back some of the details that Wall Street wanted so much to hear.

Treasury yields had already pulled back sharply in the bond market since April on expectations the Federal Reserve’s next move would be to lower its main interest rate. The only questions were by how much the Fed would cut and how quickly it would move.

A danger is that traders have built their expectations too high, something they’ve frequently done in the past. Traders see a high likelihood the Fed will cut its main interest rate by at least 1 percentage point by the end of the year, according to data from CME Group. That would require the Fed to go beyond the traditional move of a quarter of a percentage point at least once in its three remaining meetings scheduled for 2024.

If their predictions are wrong, which has also been a regular occurrence, that could mean Treasury yields have already pulled back too much since their decline began in the spring. That in turn could pressure all kinds of investments. On Thursday, for example, the S&P 500 fell to its worst loss in more than two weeks after Treasury yields climbed.

“Like usual, we will be sitting on the edge of our seats not only trying to figure out what the next data point will be, but how the Fed will interpret the data,” said Brian Jacobsen, chief economist at Annex Wealth Management.

For Friday, at least, Powell’s speech heled lead to a widespread rally across Wall Street.


The smaller stocks in the Russell 2000 jumped 3.2% to lead the market. Smaller companies can feel greater benefit from lower interest rates because of their need to borrow to grow.

In the S&P 500 index of big companies, more than 85% of the stocks climbed. The strongest push upward came from Nvidia, which rose 4.5%.

Its stock has been shaky this summer amid worries that investors took it and other highly influential Big Tech stocks too high in their mania around artificial-intelligence technology. But Nvidia has been charging back recently ahead of its highly anticipated profit report scheduled for next week.

Most of the other companies in the S&P 500 have been reporting better-than-expected profit so far this reporting season, as is usually the case.

Ross Stores added 1.8% after topping analysts’ estimates for profit and revenue during the latest quarter. But CEO Barbara Rentler also said the retailer’s low- and moderate-income customers continue to feel the pressure of high prices across the economy, even if inflation has slowed. It’s a concern that many CEOs have been echoing recently.

That helped offset an 8.2% tumble for Red Robin Gourmet Burgers, which reported a worse loss for the latest quarter than expected. It cited a slowdown across the restaurant industry.

All told, the S&P 500 rose 63.97 points to 5,634.61. The Dow jumped 462.30 to 41,175.08, and the Nasdaq composite gained 258.44 to 17,877.79.

In the bond market, the yield on the 10-year Treasury fell to 3.79% from 3.86% late Thursday. The two-year Treasury yield, which moves more closely with expectations for action by the Fed, dropped to 3.91% from 4.01% late Thursday.

In stock markets abroad, indexes rose modestly in Europe after finishing mixed across Asia.

The Nikkei 225 added 0.4% in Tokyo after Bank of Japan Gov. Kazuo Ueda appeared to indicate more increases to interest rates may be coming, but they would be gradual.

The Bank of Japan helped set off a scary summertime swoon in financial markets after a rate hike forced many hedge funds and other investors to abandon a popular trade all at once. An ensuing assurance from a top bank official that it wouldn’t raise rates again as long as markets were unstable helped calm conditions.

 

[bigdog]

ASX 200 expected to rise​

The Australian share market looks set to rise on Monday thanks to a strong finish on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 41 points or 0.5% higher.

U.S. stocks rallied close to their records Friday after the head of the Federal Reserve finally said out loud what Wall Street has been expecting for a while: Cuts to interest rates are coming soon to help the economy.

The S&P 500 rose 1.1% after Fed Chair Jerome Powell said in a highly anticipated speech that the time has come to lower its main interest rate from a two-decade high. The index pulled within 0.6% of its all-time high set last month and has clawed back virtually all of its losses from a brief but scary summertime swoon.

The Dow Jones Industrial Average rose 462 points, or 1.1%, to close above the 41,000 level for the first time since it set its own record in July, while the Nasdaq composite jumped 1.5%.

 

[bigdog]

Stock market today: Dow closes at a record even as losses for Big Tech pull S&P 500 and Nasdaq lower

The Dow Jones Industrial Average closed at a record high on Wall Street, even as losses for Big Tech companies pulled the S&P 500 and the Nasdaq composite lower.

apnews.com

Dow closes at a record even as losses for Big Tech pull S&P 500 and Nasdaq lower​

By DAMIAN J. TROISE and ALEX VEIGA
Updated 6:42 AM GMT+10, August 27, 2024

The Dow Jones Industrial Average climbed to an all-time high, even as big tech companies weighed on the broader market, leading U.S. stock indexes to a mixed finish on Wall Street.

The S&P 500 fell 0.3% Monday, remaining within 0.9% of its record set in July. The Nasdaq composite fell 0.9%, pulled down by several technology companies that tend to tip the market because of their big values. Nvidia lost 2.2%, Microsoft fell 0.8%, Amazon dropped 0.9%, Meta Platforms slid 1.3% and Tesla lost 3.2%.

The Dow rose 0.2%, to 41,240, eclipsing its previous high set in mid-July. The average is less influenced by big tech, with only Apple and Microsoft among the most valuable “Magnificent Seven” stocks in the index. That helped limit the impact of the big tech decliners.

The price of U.S. crude oil jumped 3.5% after Israel and the Lebanese militant group Hezbollah traded heavy fire on Sunday, triggering potential supply worries.

Bond yields held relatively steady. The yield on the 10-year Treasury rose to 3.82% from 3.80% late Friday.

The stock market is coming off a two-week winning streak that’s helped keep the S&P 500 and Dow within striking distance of notching new highs. Monday’s mixed market finish came at the start of a week featuring another full slate of corporate earnings and the government’s latest inflation reading.

Monday started off with a surprisingly good report showing that orders for long-lasting goods from U.S. factories, including cars, jumped 9.9% in July. An update on consumer confidence is on tap for Tuesday and the U.S. will provide a revised estimate on Thursday of economic growth during the second quarter.

Semiconductor company Nvidia reports its latest financial results on Wednesday. It has been a big beneficiary of Wall Street’s mania around artificial intelligence, becoming one of the stock market’s most massive companies, with a total value topping $3 trillion. The stock is up more than 155% for the year.

Shares in other chipmakers also fell. Broadcom lost 4.1%, Advanced Micro Devices dropped 3.2% and Lam Research slid 3.4%.

All told, the S&P 500 fell 17.77 points to 5,616.84. The Dow rose 65.44 points to 41,240.52, and the Nasdaq dropped 152.03 points to close at 17,725.76.

Others companies reporting quarterly results this week include Kohl’s, Chewy, Salesforce and Dollar General.

The key report for investors this week will come on Friday, when the the government serves up its latest data on inflation with the PCE, or personal consumption and expenditures report, for July. It is the Federal Reserve’s preferred measure of inflation.

Fed Chair Jerome Powell strongly signaled on Friday that the central bank is planning to start cutting its benchmark interest rate, which currently stands at a two-decade high. The Fed raised interest rates in order to tame inflation back to its target of 2%. The final push to the target has been elusive.

Inflation has been steadily easing and economists polled by FactSet expect the latest PCE data to show a 2.6% inflation reading. The PCE was as high as 7.1% in the middle of 2022.

The Fed has been trying to tame inflation by slowing economic growth, but not by so much that it causes a recession. The dynamics of its concerns have shifted.

“Recent commentary coming out of conversations with Fed officials shows they care more about the risk of the economy slowing,” said Nathan Thooft, chief investment officer and senior portfolio manager at Manulife Investment Management.

Traders are forecasting a rate cut to come at the Fed’s meeting in September. They expect the central bank to trim its main interest rate by at least 1 percentage point by the end of the year, according to data from CME Group.

ASX 200 expected to open flat​

The Australian share market is expected to open flat on Tuesday despite a mixed start to the week on Wall Street.

According to the latest SPI futures, the ASX 200 is poised to open the day 4 points higher.

The Dow Jones Industrial Average climbed to an all-time high, even as big tech companies weighed on the broader market, leading U.S. stock indexes to a mixed finish on Wall Street.

The S&P 500 fell 0.3% Monday, remaining within 0.9% of its record set in July. The Nasdaq composite fell 0.9%, pulled down by several technology companies that tend to tip the market because of their big values. Nvidia lost 2.2%, Microsoft fell 0.8%, Amazon dropped 0.9%, Meta Platforms slid 1.3% and Tesla lost 3.2%.

The Dow rose 0.2%, to 41,240, eclipsing its previous high set in mid-July. The average is less influenced by big tech, with only Apple and Microsoft among the most valuable “Magnificent Seven” stocks in the index. That helped limit the impact of the big tech decliners.

All told, the S&P 500 fell 17.77 points to 5,616.84. The Dow rose 65.44 points to 41,240.52, and the Nasdaq dropped 152.03 points to close at 17,725.76.

 

[bigdog]

Stock market today: Dow Jones Industrial Average inches up to another record high in mixed trading

The Dow Jones Industrial Average inched up to another record high on a mixed day of trading for Wall Street. The Dow eked out a gain of 9 points, or less than 0.1%.

apnews.com

Dow Jones Industrial Average inches up to another record high in mixed trading​

By DAMIAN J. TROISE and ALEX VEIGA
Updated 7:51 AM GMT+10, August 28, 2024

Wall Street notched another record high Tuesday, even as major stock indexes barely budged after a listless day of trading.

The Dow Jones Industrial Average rose 9 points, or less than 0.1%, which was good enough for its second all-time high in two days. The index is on an eight-day winning streak.

The benchmark S&P 500 and Nasdaq composite each finished 0.2% higher after drifting between small gains and losses most of the day. The benchmark S&P 500 is now within 0.8% of its record high set last month.

Slightly more stocks closed lower than those that posted gains on the New York Stock Exchange, reflecting the choppy bout of trading so far this week. Stock indexes posted a mixed finish on Monday.

The S&P 500 and Dow have been hovering around all-time highs since last week amid expectations among investors that the Federal Reserve will soon cut interest rates.

Wall Street has also had its eye on company earnings reports for clues about the state of the economy, the health of consumers and to gauge whether stock valuations for big tech growth companies like Nvidia have become overblown relative to companies’ prospects for future growth.

“That’s the major question, and I think all eyes will be on Nvidia as they report this week,” said Bill Merz, head of capital markets research at U.S. Bank Wealth Management. “That’s kind of the elephant in the room, so to speak, that many investors will focus on.”

The semiconductor company, with a total market value topping $3 trillion, reports its latest results on Wednesday. It rose 1.5% on Tuesday. Wall Street’s mania around artificial intelligence has helped propel a 159% gain for the stock this year.

The market got some positive economic data to mull over Tuesday.

The Conference Board, a business research group, said that its consumer confidence index rose to 103.3 in August from 101.9 in July. The results were better than economists expected and could help bolster sentiment that consumers remain resilient, despite pressure from inflation.

Consumer spending accounts for nearly 70% of U.S. economic activity. That has been a strong area of the economy, along with the jobs market.

Best Buy and Dollar General will report their latest results Thursday. That could give investors more insight into where, and how much, consumers are spending.

Most of the companies in the S&P 500 have reported better-than-expected profit so far this reporting season. Several companies rose Tuesday as traders cheered their latest quarterly snapshots.

Hain Celestial Group jumped 18.6% after the company’s fiscal fourth-quarter profit topped Wall Street’s estimates. Trip.com Group climbed 8.6% after its second-quarter earnings beat analysts’ forecasts and the company touted strong travel demand.

Traders also bid up shares in cruise line operators. Royal Caribbean rose 4.3%, Norwegian Cruise Line gained 3.6% and Carnival added 2.7%.

The parent company of the Paramount movie studio slid 7.1% after Edgar Bronfman Jr., the former head of Warner Music Group, abandoned his bid for the company, clearing the way for it to be acquired by the media company Skydance.

All told, the S&P 500 rose 8.96 points to 5,625.80. The Dow rose 9.98 points to 41,250.50, and the Nasdaq gained 29.05 points to close at 17,754.82.

Treasury yields held steady in the bond market. The yield on the 10-year Treasury rose to 3.83% from 3.82% late Monday.

Investors are looking ahead to Friday, when the government releases its latest data on inflation with the PCE, or personal consumption and expenditures report, for July. It’s the preferred measure of inflation for the Federal Reserve, which has signaled that long-awaited interest rate cuts are coming.

Inflation has been falling steadily over the past two years after the central bank raised its benchmark rate to its highest level in two decades. The economy has persevered through both inflation and higher borrowing rates, bringing the Fed closer to its goal of taming inflation without pushing the economy into a recession.

Traders expect the Fed to start cutting its main interest rate at its next meeting in September, with up to a 1% reduction by the end of the year.

European markets mostly rose, and Asian markets were mixed.

ASX 200 expected to fall​

The Australian share market looks set to have another poor session on Wednesday despite a reasonably positive night in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 29 points or 0.3% lower.

Wall Street notched another record high Tuesday, even as major stock indexes barely budged after a listless day of trading.

The Dow Jones Industrial Average rose 9 points, or less than 0.1%, which was good enough for its second all-time high in two days. The index is on an eight-day winning streak.

The benchmark S&P 500 and Nasdaq composite each finished 0.2% higher after drifting between small gains and losses most of the day. The benchmark S&P 500 is now within 0.8% of its record high set last month.

 

[bigdog]

Stock market today: Losses for Big Tech companies lead Wall Street lower

Losses for several big technology companies pulled the stock market lower. The S&P 500 fell 0.6% Wednesday, weighed down by drops in Nvidia, Apple, Microsoft and Amazon.

apnews.com

Losses for Big Tech companies lead Wall Street lower​

By DAMIAN J. TROISE and ALEX VEIGA
Updated 6:56 AM GMT+10, August 29, 2024

Stocks on Wall Street closed lower Wednesday as a pullback in big technology companies outweighed gains elsewhere in the market.

The S&P 500 fell 0.6%, weighed down by drops in Nvidia, Apple, Microsoft and Amazon. About 56% of the stocks in the benchmark index finished in the red. Tech sector stocks include many companies with outsized values that tend to lean more heavily on the index.

The Dow Jones Industrial Average, which was coming off two consecutive all-time highs, fell 0.4%. The Nasdaq composite, which is heavily weighted with technology stocks, closed 1.1% lower.

The selling came ahead of an eagerly anticipated earnings report from the semiconductor company Nvidia, whose chips power AI applications. The company is one of the most influential stocks on Wall Street, with a total market value topping $3 trillion.

Nvidia reported its second-quarter results late Wednesday. Its earnings and revenue topped Wall Street’s forecasts, but the stock fell 3.7% in after-hours trading. The shares fell 2.1% during the regular session. They’re still up 153% for the year.
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The chipmaker is one of several companies that have ridden a wave of enthusiasm over artificial intelligence developments and have been responsible for much of the broader market’s big gains over the last year.

The market’s pullback ahead of Nvidia’s quarterly results may have been partly due to news about another company tied to AI, Super Micro Computer.

The server technology company’s stock sank 19.1% for the biggest decline among S&P 500 stocks after the company said it was delaying the filing of its annual report.

“The Super Micro story I think has people on edge because they’re so directly linked to the AI theme,” said Ross Mayfield, investment strategist at Baird.

Investors also reviewed a mixed batch of earnings and corporate financial updates from other companies Wednesday. Nordstrom rose 4.2% after beating analysts’ earnings expectations and raising its financial forecasts for the year. Rival Kohl’s rose 0.3% after also beating analysts’ earnings expectations.

PVH, which owns the Calvin Klein and Tommy Hilfiger brands, fell 6.4% after giving investors a revenue forecast short of analysts’ expectations. Food producer J.M. Smucker fell 4.9% after trimming its earnings forecast for the year.

All told, the S&P 500 fell 33.62 points to 5,592.18. The Dow fell 159.08 points to 41,091.42. The Nasdaq fell 198.79 points to 17,556.03.

The latest results from retailers and others come as Wall Street and the Federal Reserve try to gauge the resiliency of U.S. consumers amid the squeeze from inflation and high borrowing rates. The latest updates from clothing retailers, food producers and others can help shed more light on how and where people are spending money.

Investors are also looking ahead to Friday, when the U.S. government releases its latest data on inflation with the PCE, or personal consumption and expenditures report, for July. The hope is that the data shows inflation easing further — or at least stagnating — so that Fed officials remain comfortable cutting interest rates at their September meeting as they’ve strongly suggested they would.
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Economists expect the PCE, which is the Fed’s preferred measure of inflation, to show that inflation edged up to 2.6% in July from 2.5% in June. It was as high as 7.1% in the middle of 2022. The rate of inflation has been easing steadily back toward the central bank’s target of 2% since then, following the Fed’s aggressive interest rate hikes.

Traders expect the central bank to begin trimming its benchmark interest rate back from a two-decade high at its next meeting in September, with cuts totaling up to 1% by the end of the year.

The expectations for those interest rate cuts follow reports on retail sales, employment and consumer confidence that show the economy continues to remain strong. That has helped build confidence that the Fed will accomplish its goal of taming inflation without stalling the economy into a recession.

“Economic fundamentals continue to point to sustainable disinflation,” said Gregory Daco, chief economist at EY.

Treasury yields were mixed in the bond market. The yield on the 10-year Treasury rose to 3.84% from 3.83% on Tuesday.

Investor Warren Buffett’s Berkshire Hathaway unloaded more of its Bank of America stake, selling nearly 25 million shares worth almost $1 billion over the past week. Berkshire Hathaway’s Class A stock, already the most expensive stock on Wall Street, gained enough ground to elevate the conglomerate into the club of companies valued by the stock market at over $1 trillion. It’s the only company outside of the technology-related “Magnificent Seven” with that distinction.

Berkshire’s Class A shares rose $5,152.03, or 0.7%, to close at $696,502.02.

Elsewhere, markets were mostly lower in Europe and mixed in Asia.

ASX 200 expected to fall​

It looks set to be a subdued session for Aussie investors on Thursday following a poor night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% lower this morning.

Stocks on Wall Street closed lower Wednesday as a pullback in big technology companies outweighed gains elsewhere in the market.

The S&P 500 fell 0.6%, weighed down by drops in Nvidia, Apple, Microsoft and Amazon. About 56% of the stocks in the benchmark index finished in the red. Tech sector stocks include many companies with outsized values that tend to lean more heavily on the index.

The Dow Jones Industrial Average, which was coming off two consecutive all-time highs, fell 0.4%. The Nasdaq composite, which is heavily weighted with technology stocks, closed 1.1% lower.

All told, the S&P 500 fell 33.62 points to 5,592.18. The Dow fell 159.08 points to 41,091.42. The Nasdaq fell 198.79 points to 17,556.03.

 

[bigdog]

Stock market today: Wall Street sees mixed results after late-day selling, drop for Nvidia

Stocks closed with mixed results on Wall Street after some late-day selling. The S&P 500 was flat after giving up an earlier gain of nearly 1%.

apnews.com

Wall Street sees mixed results after late-day selling, drop for Nvidia​

By DAMIAN J. TROISE and ALEX VEIGA
Updated 7:16 AM GMT+10, August 30, 2024

A late-afternoon slide by some Big Tech companies cut into Wall Street’s gains Thursday, leading to a mixed finish for U.S. stock indexes.

The S&P 500 ended flat after giving up an earlier gain of nearly 1%. The benchmark index is about 1.3% away from its record set in July.

The Dow Jones Industrial Average managed a 0.6% gain, enough for its third all-time high since Monday. The Nasdaq composite, which is heavily weighted with technology stocks, slipped 0.2%. It had been up 1.3% in the early going.

Despite the mixed finish, gainers outnumbered decliners by roughly two to one on the New York Stock Exchange.

Nvidia, which has ridden the frenzy over artificial intelligence to become one of the S&P 500’s most influential companies, was the biggest weight on the market. Its shares fell 6.4% despite stellar results for the second quarter. The stock, with a total market value topping $3 trillion, is still up 138% in 2024.

Nvidia’s earnings beat and forecast may not have been a big enough surprise for some traders, but surging demand for its artificial intelligence chips show that “it is powering the AI revolution,” said Wedbush Securities analyst Dan Ives, in a note to investors.

“The tech stalwart delivered massive ‘drop the mic’ numbers yet again,” he said.

The market rallied earlier as encouraging data helped shift traders’ focus back on the U.S. economy.

The Commerce Department upgraded its assessment of U.S. economic growth for the second quarter to 3%, compared to a previous estimate of 2.8%. It’s another signal that the economy remains strong, despite pressure from stubborn inflation and high interest rates.

Traders also had their eye on more corporate earnings.

CrowdStrike Holdings rose 2.8% after the cybersecurity company beat analysts’ second-quarter financial forecasts. The company had a botched software update during its most recent quarter, which triggered a technology meltdown that stranded thousands of people in airports, among other disruptions.

Dollar General slumped 32.1% after cutting its earnings forecast. Best Buy jumped 14.1% after the nation’s largest consumer electronics chain beat Wall Street forecasts, even as sales slipped and it cut guidance for the year.

The mostly solid earnings and economic growth updates are capping off a month of encouraging reports for the broader economy. Data from various reports in August have shown that retail sales, employment and consumer confidence remain strong.

“Solid growth of consumer spending propelled the economy forward in the second quarter, and the increase of consumer confidence in July suggests it will propel growth in the second half of the year as well,” said Bill Adams, chief economist for Comerica Bank.

The key report this week comes on Friday, when the U.S. government releases its July data on inflation with the PCE, or personal consumption and expenditures report. Economists expect the PCE, which is the Federal Reserve’s preferred measure of inflation, to show that inflation edged up to 2.6% in July from 2.5% in June. It was as high as 7.1% in the middle of 2022.
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The solid economic data and easing of inflation have bolstered hopes for the Federal Reserve to achieve what it hopes is a “soft landing” for the economy after raising its benchmark interest rate to a two-decade high. The goal was to slow the economy and tame inflation without causing a recession.

The central bank has signaled that it intends to start cutting its benchmark interest rate. Traders expect the first cut to happen at the next meeting in September. The market is betting that the Fed will cut its benchmark rate by 1% by the end of the year.

Anticipation for lower interest rates ahead is helping to ease some pressure on what has been a tight housing market. The average rate on a 30-year mortgage eased for the second week in a row and remains at its lowest level in more than a year. Still, most economists expect it will take even lower rates to get would-be homebuyers off the sidelines.

Bond yields rose in the Treasury market. The yield on the 10-year Treasury rose to 3.86% from 3.84% late Wednesday.

All told, the S&P 500 lost 0.22 points to 5,591.96. The Dow gained 243.63 points to 41,335.05. The Nasdaq fell 39.60 points to 17,516.43.

Markets in Europe were mostly higher and markets in Asia were mixed.

ASX 200 expected to rise​

The Australian share market looks set to rebound on Friday despite a mixed session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open 51 points or 0.6% higher this morning.

A late-afternoon slide by some Big Tech companies cut into Wall Street’s gains Thursday, leading to a mixed finish for U.S. stock indexes.

The S&P 500 ended flat after giving up an earlier gain of nearly 1%. The benchmark index is about 1.3% away from its record set in July.

The Dow Jones Industrial Average managed a 0.6% gain, enough for its third all-time high since Monday. The Nasdaq composite, which is heavily weighted with technology stocks, slipped 0.2%. It had been up 1.3% in the early going.

All told, the S&P 500 lost 0.22 points to 5,591.96. The Dow gained 243.63 points to 41,335.05. The Nasdaq fell 39.60 points to 17,516.43.

 

[bigdog]

U.S. stock exchanges will be closed Monday for the Labor Day holiday.

Stock market today: Wall Street climbs as S&P 500 closes out fourth straight winning month

Stocks on Wall Street bounced back from a midafternoon fade Friday, and the market closed out its fourth straight winning month with solid gains.

apnews.com

Wall Street climbs as S&P 500 closes out fourth straight winning month​

By ALEX VEIGA
Updated 7:07 AM GMT+10, August 31, 2024

Stocks on Wall Street finished broadly higher Friday as the market closed out its fourth straight winning month with solid gains.

A late-afternoon rally helped stocks bounce back from a midafternoon slide. The S&P 500 rose 1%, with about 76% of the stocks in the index notching gains.

The benchmark S&P 500 closed August with a 2.3% gain for the month. It’s now up 18.4% so far this year and is within 0.4% of the all-time high it set in July.

The Dow Jones Industrial Average rose 0.6%, setting its fourth all-time high this week.

The Nasdaq composite ended 1.1% higher.

Wall Street spent the day mulling over encouraging reports on inflation, consumer spending and income.

The Commerce Department said its personal consumption and expenditures report showed prices rose just 0.2% from June to July, up slightly from the previous month’s 0.1% increase. Compared with a year earlier, inflation was unchanged at 2.5%.

Economists had expected the PCE, which is the Federal Reserve’s preferred measure of inflation, would to show that inflation edged up to

The report confirms price increases are cooling, keeping the central bank on track to cut rates for the first time in more than four years at its upcoming meeting next month. The market is betting that the Fed will cut its benchmark rate by a full 1% by the end of the year.

“Weakening inflation gives the Fed plenty of room to begin cutting rates, while still resilient household spending is the recipe for a soft landing,” said David Alcaly, lead macroeconomic strategist at Lazard Asset Management.

Bond yields were mixed in the Treasury market. The yield on the 10-year Treasury rose to 3.92% from 3.86% late Thursday.

Technology stocks led the market. Marvell Technology climbed 9.2% after its latest quarterly results hit Wall Street’s sales and profit targets. Other chipmakers also rose. Broadcom added 3.8% and Nvidia gained 1.5%.

Dell also beat analysts’ second-quarter forecasts, boosted by record server and networking revenue as companies continue to beef up their artificial intelligence infrastructure. Its shares rose 4.3%.

Mall-based cosmetics retailer Ulta Beauty fell 4% after its sales and profit fell short of expectations. Ulta also trimmed its guidance below analysts’ forecasts. Warren Buffet’s Berkshire Hathaway revealed it holds a stake in the company earlier this month,

All told, the S&P 500 rose 56.44 points to 5,648.40. The Dow rose 228.03 points to close at 41,563.08. The Nasdaq gained 197.19 points to 17,713.62.

Mostly solid U.S. earnings and economic growth updates capped off a month of encouraging reports for the broader economy. Data from various reports in August have shown that retail sales, employment and consumer confidence remain strong.

Friday’s Commerce Department report also showed that Americans stepped up their spending by a vigorous 0.5% from June to July, up from 0.3% the previous month, and incomes rose 0.3%, faster in July than in the previous month.

The trends have encouraged Wall Street. Still, stocks have historically done poorly in September.

Since 1950, the S&P 500 has finished higher in September only 43% of the time, making it the worst month for stocks, said Adam Turnquist, chief technical strategist for LPL Financial.

“During the month, the index tends to trade sideways during the first half, with losses beginning to accumulate into month end,” Turnquist said.

Investors will be looking for clues on the Fed’s next move next Friday, when the government serves up its latest monthly jobs report. Economists polled by FactSet are expecting the economy added 155,000 jobs in August. That would follow a gain of 114,000 the previous month.

“The payroll data next week is incredibly important,” said Liz Young Thomas, head of investment strategy at SoFi.

Markets in Europe rose initially following a report showing inflation fell sharply in the European Union this month. The report sets up the European Central Bank to cut interest rates next month. Major stock indexes in the region turned red by late afternoon. France’s CAC 40 slipped 0.1%, Germany’s DAX and Britain’s FTSE 100 were essentially flat.

Markets in Asia rose. Japan’s benchmark Nikkei 225 added 0.7% to finish at 38,647.75 after data on the world’s fourth largest economy came in mostly positive.

U.S. stock exchanges will be closed Monday for the Labor Day holiday.

 

[bigdog]

ASX 200 expected to fall​

The Australian share market looks set to fall on Monday despite a strong finish on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.2% lower

Stocks on Wall Street finished broadly higher Friday as the market closed out its fourth straight winning month with solid gains.

A late-afternoon rally helped stocks bounce back from a mid afternoon slide. The S&P 500 rose 1%, with about 76% of the stocks in the index notching gains.

The benchmark S&P 500 closed August with a 2.3% gain for the month. It’s now up 18.4% so far this year and is within 0.4% of the all-time high it set in July.

The Dow Jones Industrial Average rose 0.6%, setting its fourth all-time high this week.

The Nasdaq composite ended 1.1% higher.

 

[bigdog]

U.S. stock exchanges were closed Monday for the Labor Day holiday.

Global benchmarks are mixed in cautious trading ahead of US holiday and jobs report

Global shares are mixed in cautious trading ahead of the Labor Day holiday in the U.S. Investors also are looking ahead to the U.S. employment report set for release later this week for an indication of the strength of the American economy.

apnews.com

Global benchmarks are mixed in cautious trading ahead of US holiday and jobs report​

By YURI KAGEYAMA
Updated 8:10 PM GMT+10, September 2, 2024

TOKYO (AP) — Global shares were mixed in cautious trading Monday ahead of the Labor Day holiday in the U.S., when stock exchanges are closed.

France’s CAC 40 slipped 0.3% in early trading to 7,611.64, while Germany’s DAX fell 0.1% to 18,881.14. Britain’s FTSE 100 was little changed, down less than 0.1% at 8,370.39. U.S. shares were set to drift lower with Dow futures down 0.1% at 41,613.00. S&P 500 futures fell 0.1% to 5,654.25.

Investors were also looking ahead to the U.S. employment report set for release Friday for an indication of the strength of the American economy.

In Asia, Japan’s Nikkei 225 gained 0.1% to finish at 38,700.87, after the Finance Ministry reported capital spending by Japanese companies in the April-June quarter increased 7.4% from the previous year.

After a period of stagnation, Japan’s economy is showing signs of a recovery. Next week, Japan will release revised gross domestic product, or GDP, data, a measure of the value of a nation’s goods and services. The preliminary data released earlier showed the first growth in two quarters.

Australia’s S&P/ASX 200 rose 0.2% to 8,109.90, while South Korea’s Kospi gained nearly 0.3% to 2,681.00. Hong Kong’s Hang Seng slipped 1.7% to 17,691.97. The Shanghai Composite dipped 1.1% to 2,811.04.

A bit of pessimism rolled in over China’s growth prospects over the weekend, as its National Bureau of Statistics reported that August manufacturing PMI, a barometer of industrial output, fell from 49.4 to 49.1. That was weaker than market forecasts.

Recent reports on the U.S. economy, including inflation, consumer spending and income, have been encouraging. The Commerce Department said its personal consumption and expenditures report showed prices rose 0.2% from June to July, up slightly from the previous month’s 0.1% increase.

That means price rises are slowing down, and that’s likely to lead to the Federal Reserve cutting interest rates for the first time in more than four years. The market expects the Fed will start cutting rates later this month.
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In other encouraging news, Friday’s Commerce Department report showed Americans stepped up their spending by 0.5% from June to July and incomes rose 0.3%, faster in July than the previous month.

In energy trading, benchmark U.S. crude rose 5 cents to $73.60 a barrel. Brent crude, the international standard, added 6 cents to $76.99 a barrel.

In currency trading, the U.S. dollar edged up to 146.68 Japanese yen from 146.18 yen. The euro cost $1.1071, up from $1.1053.

ASX 200 expected to rise again​

The Australian share market is expected to rise again on Tuesday despite a mixed start to the week in Europe.

According to the latest SPI futures, the ASX 200 is poised to open the day 4 points higher.

Wall Street was closed for the Labour Day holiday but in Europe the DAX was up 0.1%, the CAC rose 0.2%, and the FTSE fell 0.15%.

 

[bigdog]

Stock market today: Wall Street tumbles on worries about the economy, and Dow drops more than 600

U.S. stocks tumbled to their worst day since an early August sell-off after another report raised worries about the economy's health.

apnews.com

Wall Street tumbles on worries about the economy, and Dow drops more than 600​

By STAN CHOE
Updated 6:20 AM GMT+10, September 4, 2024

NEW YORK (AP) — U.S. stocks tumbled Tuesday to their worst day since an early August sell-off, as a week full of updates on the economy got off to a discouragingly weak start.

The S&P 500 sank 2.1% to give back a chunk of the gains from a three-week winning streak that had carried it to the cusp of its all-time high. The Dow Jones Industrial Average dropped 626 points, or 1.5%, from its own record set on Friday before Monday’s Labor Day holiday. The Nasdaq composite fell 3.3% as Nvidia and other Big Tech stocks led the way lower.

Treasury yields also stumbled in the bond market after a report showed U.S. manufacturing shrank again in August, sputtering under the weight of high interest rates. Manufacturing has been contracting for most of the past two years, and its performance for August was worse than economists expected.

“Demand remains subdued, as companies show an unwillingness to invest in capital and inventory due to current federal monetary policy and election uncertainty,” said Timothy Fiore, chair of the Institute for Supply Management’s manufacturing business survey committee.

Stocks of oil and gas companies were some of the market’s biggest losers after the price of crude oil fell roughly 4% on concerns about how much fuel a fragile global economy will burn. A barrel of benchmark U.S. oil is almost back to $70 and down for the year after climbing above $85 in April.

Exxon Mobil lost 2.1%, and ConocoPhillips dropped 3.5%.

Similar worries about a slowing U.S. economy and a possible recession had helped send stocks on a scary summertime swoon in early August. It briefly knocked the S&P 500 nearly 10% below its record set in July, but financial markets quickly rebounded on hopes that the Federal Reserve could pull off a perfect landing for the economy.

The Fed appears set to lower interest rates later this month in hopes of easing conditions for the economy and avoiding a recession after earlier jacking its main interest rate to a two-decade high to beat high inflation.

Other reports due later this week could show how much help the economy needs, including updates on the number of job openings U.S. employers were advertising at the end of July and how strong U.S. services businesses grew last month. The week’s highlight will likely arrive on Friday, when a report will show how many jobs U.S. employers created during August.

The jobs report has once again become the main event for the stock market each month, taking over from updates on inflation, according to analysts at Bank of America. Many traders are anticipating the Fed will deliver a full percentage point of cuts to interest rates this year, which is a “recession-sized” amount, Gonzalo Asis and other economists and strategists wrote in a BofA Global Research report.

The strength of this jobs report, or lack thereof, will likely determine the size of the Fed’s upcoming cut, according to Goldman Sachs economist David Mericle. If Friday’s data shows an improvement in hiring over July’s disappointing report, it could keep the Fed on course for a traditional-sized move of a quarter of a percentage point.
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But if Friday’s report is weaker, it could drive the Fed to deliver an outsized cut of half a percentage point from the federal funds rate’s current range of 5.25% to 5.50%, Mericle said.

While cuts to rates are generally boons to investment prices, a recession could more than wipe out that benefit by dragging down corporate profits.

On Wall Street, U.S. Steel fell 6.1% in its first trading after Vice President Kamala Harris said Monday that she opposed the company’s planned sale to Japan’s Nippon Steel. The Democratic presidential nominee’s comments, which echo President Joe Biden’s position, came after Nippon Steel Corp. said last week it would spend an additional $1.3 billion to upgrade facilities in Pennsylvania and Indiana, on top of a previous $1.4 billion commitment.

Nippon Steel also reiterated that it expects the transaction to close by the end of this year, despite ongoing political and labor opposition.

Nvidia was the heaviest weight by far on the S&P 500 after falling 9.5%. Its stock has been struggling even after the chip company topped high expectations for its latest profit report. The subdued performance could bolster criticism that Nvidia and other Big Tech stocks simply soared too high in Wall Street’s frenzy around artificial-intelligence technology.

All of the stocks that have come to be known as the “Magnificent Seven,” which accounted for the vast majority of the S&P 500’s return last year and early this year, fell at least 1.3%.

Still, it wasn’t a complete washout on Wall Street. Nearly 30% of the stocks within the S&P 500 climbed, led by those that tend to benefit the most from lower interest rates. That includes dividend-paying stocks, as well as companies whose profits are less closely tied to the ebbs and flows of the economy, such as real-estate stocks and makers of everyday staples for consumers.

All told, the S&P 500 fell 119.47 points to 5,528.93. The Dow dropped 626.15 to 40,936.93, and the Nasdaq composite sank 577.33 to 17,136.30.

In the bond market, the yield on the 10-year Treasury fell to 3.84% from 3.91% late Friday. That’s down from 4.70% in late April, a significant move for the bond market.

In stock markets abroad, indexes were lower across much of Europe and Asia.

Worries were also growing about the resilience of China’s economy, as recently disclosed data showed a mixed picture. Weak earnings reports from Chinese companies, including property developer and investor New World Development Co., added to the pessimism.

ASX 200 expected to crash​

The Australian share market looks set to have a difficult session on Wednesday following a selloff in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 94 points or 1.1% lower.

U.S. stocks tumbled Tuesday to their worst day since an early August sell-off, as a week full of updates on the economy got off to a discouragingly weak start.

The S&P 500 sank 2.1% to give back a chunk of the gains from a three-week winning streak that had carried it to the cusp of its all-time high. The Dow Jones Industrial Average dropped 626 points, or 1.5%, from its own record set on Friday before Monday’s Labor Day holiday. The Nasdaq composite fell 3.3% as Nvidia and other Big Tech stocks led the way lower.

All told, the S&P 500 fell 119.47 points to 5,528.93. The Dow dropped 626.15 to 40,936.93, and the Nasdaq composite sank 577.33 to 17,136.30.

VERY RED DAY YESTERDAY

 

[divs4ever]

ummmm a drop in the ASX of 100 points ( or less ) is NOT a crash

now it MIGHT be the beginning of a crash ( a drop of more than 20% )

but a long way off a crash , currently

BTW the ASX is still around record highs ( at least until the open )

 

[bigdog]

Stock market today: Wall Street extends losses as technology and energy stocks fall

Stocks lost more ground on Wall Street, led by declines in the technology and energy sectors. The S&P 500 fell 0.2% Wednesday, following a 2.1% drop a day earlier.

apnews.com

Wall Street extends losses as technology and energy stocks fall​

By DAMIAN J. TROISE and ALEX VEIGA
Updated 6:48 AM GMT+10, September 5, 2024

U.S. stock indexes lost more ground Wednesday, with declines in the technology, energy and other sectors adding to Wall Street’s losses a day after the market’s worst skid in a month.

The S&P 500 fell 0.2% following Tuesday’s 2.1% drop. The Nasdaq composite shed 0.3%. The Dow Jones Industrial Average, however, managed a gain of 0.1%.

The market’s latest pullback came as a government report showed job openings in the U.S. fell unexpectedly in July, a sign that hiring could cool in the coming months.

The Labor Department reported that there were 7.7 million open jobs in July, down from 7.9 million in June and the fewest since January 2021. Openings have fallen steadily this year, from nearly 8.8 million in January. But overall, the report was mixed, with hiring having risen last month.

The employment market is being closely watched by investors and the Federal Reserve as a gauge of the economy’s strength. Wall Street traders are anticipating that the Fed will start cutting its benchmark interest rate at its meeting later in September.
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The central bank raised rates to a two-decade high in an effort to cool inflation. The rate of inflation has been steadily easing under the weight of the higher rates, while the broader economy has remained relatively strong. The Fed’s goal was to tame inflation without stalling the economy into a recession. A weakening jobs market could raise concerns about slower economic growth ahead, but it could also mean less inflation pressure.

“Job vacancies declined, hires rose and quits were steady,” said Carl Weinberg and Rubeela Farooqi, economists at High Frequency Economics, in a note. “There is no signal here of any sudden collapse of the labor market here or any imminent recession.”

Technology stocks were the biggest weights on the market. Some of the bigger companies in the sector have an outsized impact on the broader market because of their large market values. Nvidia, with its $2.65 trillion market value, fell 1.7%. Apple fell 0.9% and Intel slid 3.3%.

Energy stocks also helped pull the market lower. Exxon Mobil fell 1.2% as the price of U.S. crude oil fell below $70 a barrel.

Several health care companies also slumped. Eli Lilly and Co. fell 1.1%, Elevance Health dropped 2.7% and Centene slumped 8.7%.

Shares of U.S. Steel sank 17.5% after the Biden administration signaled it’s open to formally blocking the company’s acquisition by Nippon Steel of Japan.

All told, the S&P 500 fell 8.86 points to 5,520.07. The Dow rose 38.04 points to 40,974.97. The Nasdaq lost 52 points to close at 17,084.30.

Several other reports this week will help give a clearer picture of the economy for the Fed and Wall Street.

The Institute for Supply Management will release its services sector index for August on Thursday. The services sector is the biggest component of the U.S. economy.

The U.S. will release its monthly jobs report for August on Friday. Economists polled by FactSet expect that report to show that the U.S. added 160,000 jobs, up from 114,000 in July and the unemployment rate edged lower to 4.2% from 4.3%. The report’s strength, or weakness, will likely influence the Fed’s plans for how it trims its benchmark interest rate.

Traders are forecasting the Fed will cut its benchmark rate by 1% by the end of 2024. Such a move would require it to cut the rate by more than the traditional quarter of a percentage point at one of its meetings in the next few months.

Dollar Tree slumped 22.2% for the biggest drop among S&P 500 stocks after the discount retailer slashed its full-year earnings forecast. Hormel Foods fell 6.4% after the maker of Spam trimmed its revenue forecast for the year.

Department store operator Nordstrom slipped 0.2%. Members of the Nordstrom family offered to take the company private for $3.76 billion cash, months after first expressing interest in a buyout.

In the bond market, the yield on the 10-year Treasury fell to 3.76% from 3.83% late Tuesday. That’s down from 4.70% in late April, a significant move for the bond market. The yield on the 2-year Treasury, which more closely tracks potential action from the Fed, fell to 3.76% from 3.87%.

The 10-year Treasury and 2-year Treasury are at their least inverted levels in more than two years. An inversion occurs when the shorter duration yield is higher than the longer duration yield. It has historically signaled a recession, though the current inversion has stood for more than two years amid a growing economy.

Markets in Europe and Asia fell.

ASX 200 expected to rise​

It looks set to rise for Aussie investors on Thursday following a mixed night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 2 points higher this morning.

U.S. stock indexes lost more ground Wednesday, with declines in the technology, energy and other sectors adding to Wall Street’s losses a day after the market’s worst skid in a month.

The S&P 500 fell 0.2% following Tuesday’s 2.1% drop. The Nasdaq composite shed 0.3%. The Dow Jones Industrial Average, however, managed a gain of 0.1%.

The market’s latest pullback came as a government report showed job openings in the U.S. fell unexpectedly in July, a sign that hiring could cool in the coming months.

All told, the S&P 500 fell 8.86 points to 5,520.07. The Dow rose 38.04 points to 40,974.97. The Nasdaq lost 52 points to close at 17,084.30.

 

[bigdog]

Stock market today: Most of Wall Street slips as S&P 500 stays on track for worst week since April

Most U.S. stocks fell following a mixed round of data on the economy, keeping them on track for their worst week since April.

apnews.com

Most of Wall Street slips as S&P 500 stays on track for worst week since April​

By STAN CHOE
Updated 7:25 AM GMT+10, September 6, 2024

NEW YORK (AP) — Most U.S. stocks fell Thursday following a mixed round of data on the economy, keeping them on track for their worst week since April.

The S&P 500 slipped 0.3% for a third straight drop, and the Dow Jones Industrial Average lost 219 points, or 0.5%. The Nasdaq composite held up better than the rest of the market and added 0.3% thanks to gains for Tesla and a handful of other Big Tech stocks.

Treasury yields also slipped a bit in the bond market following the mixed economic reports. One suggested U.S. companies slowed their hiring last month, falling well short of economists’ forecasts for an acceleration. Another report, though, said fewer U.S. workers filed for unemployment benefits last week than expected. That’s an indication layoffs remain low.

A report released later in the morning offered more optimism, saying growth for businesses in the finance, health care and other services industries was stronger last month than economists expected.

“Generally, business is good,” one respondent said in the survey compiled by the Institute for Supply Management. “However, there are concerns of slowing foot traffic at restaurants and other venues where our products are sold.”

Stocks have struggled this week after another dud of a report on U.S. manufacturing reignited worries about the slowing U.S. economy and how much it could hurt corporate profits. That has raised the stakes for a highly anticipated report scheduled for Friday.

That’s when the U.S. government will say how many jobs U.S. employers added last month, and economists are expecting an acceleration of hiring. The job market’s performance could dictate how big of a cut to interest rates the Federal Reserve will deliver at its next meeting later this month.

After keeping its main interest rate at a two-decade high to stifle inflation, the Federal Reserve has hinted it’s about to begin cutting rates in order to protect the job market and keep the overall economy from sliding into a recession. The question on Wall Street is if that ends up being too little, too late.

In the bond market, the yield on the 10-year Treasury eased to 3.73% from 3.76% late Wednesday. It’s down from 4.70% in April, which is a significant move for the bond market.

Perhaps more importantly for investors, the 10-year yield is flirting with the end of a more than two-year stretch where it was lower than the two-year Treasury yield. That’s an unusual occurrence called an “inverted yield curve.” Usually, longer-term yields are higher than shorter-term yields.

Many investors see an inverted yield curve as a warning of a coming recession, and the inversion since the summer of 2022 has been a key talking point for market pessimists. Often, an inverted yield curve flips back to normal ahead of a recession as traders cement their expectations for coming cuts to interest rates by the Fed. But the 2020 pandemic created a recession and resulting recovery that have often defied predictions and conventional wisdoms.

The two-year Treasury yield was sitting at 3.74%, just above the 10-year yield.

On Wall Street, Old Dominion Freight Line fell to one of the sharpest losses in the S&P 500 after reporting discouraging revenue trends for August. It cited “softness in the domestic economy,” along with lower fuel surcharge revenue for the weakness. The freight company’s stock fell 4.9%.

Verizon’s stock slipped 0.4% after it announced it’s buying Frontier Communications in a $20 billion deal to strengthen its fiber network. Frontier Communications, which soared nearly 38% the day before, gave back 9.5%.

On the winning end of Wall Street was Tesla. It rose 4.9% after laying out a roadmap for upcoming artificial-intelligence developments, including the possibility of full self-driving in Europe and China.

JetBlue Airways flew 7.2% higher after raising its forecast for revenue in the summer. It said it’s seeing better performance in the Latin America region particularly and that it picked up business when technology outages in July forced rivals to cancel flights.

All told, the S&P 500 dipped 16.66 points to 5,503.41. The Dow dropped 219.22 to 40,755.75, and the Nasdaq composite rose 43.36 to 17,127.66.

In stock markets abroad, indexes were mixed across Asia and Europe.

Japan’s Nikkei 225 fell 1.1% after strong data on growth in wages there raised expectations for another hike to interest rates.

ASX 200 expected to rise​

The Australian share market looks set to rise again on Friday despite a mixed session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open 9 points higher this morning.

Most U.S. stocks fell Thursday following a mixed round of data on the economy, keeping them on track for their worst week since April.

The S&P 500 slipped 0.3% for a third straight drop, and the Dow Jones Industrial Average lost 219 points, or 0.5%. The Nasdaq composite held up better than the rest of the market and added 0.3% thanks to gains for Tesla and a handful of other Big Tech stocks.

All told, the S&P 500 dipped 16.66 points to 5,503.41. The Dow dropped 219.22 to 40,755.75, and the Nasdaq composite rose 43.36 to 17,127.66.

 

[bigdog]

Stock market today: Wall Street falls sharply to close its worst week in nearly 18 months

Another rout hit Wall Street after an update on the U.S. job market came in weak enough to add to worries about the economy.

apnews.com

Wall Street falls sharply to close its worst week in nearly 18 months​

By STAN CHOE
Updated 7:17 AM GMT+10, September 7, 2024

NEW YORK (AP) — Another rout hit Wall Street Friday, with formerly high-flying technology stocks again taking the brunt, after a highly anticipated update on the U.S. job market came in weak enough to add to worries about the economy.

The S&P 500 dropped 1.7% to close out its worst week since March 2023. Broadcom, Nvidia and other tech companies drove the market lower amid ongoing concerns that their prices soared too high in the boom around artificial intelligence, and they dragged the Nasdaq composite down by a market-leading 2.6%.

The Dow Jones Industrial Average dropped 410 points, or 1%, after erasing a morning gain of 250 points.

Sharp swings also hit the bond market, where Treasury yields tumbled, recovered and then fell again after the jobs report showed U.S. employers hired fewer workers in August than economists expected. It was billed as the most important jobs report of the year, and it showed a second straight month where hiring came in below forecasts. It also followed recent reports showing weakness in manufacturing and some other areas in the economy.

Such a softening of the job market is actually just what the Federal Reserve and its chair, Jerome Powell, have been trying to get in order to stifle high inflation, “but only to a certain extent and the data is now testing Chair Powell’s stated limits,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

Friday’s data raised questions about how much the Federal Reserve will cut its main interest rate by at its meeting later this month. The Fed is about to turn its focus more toward protecting the job market and preventing a recession after keeping the federal funds rate at a two-decade high for more than a year.

Cuts to interest rates can boost investment prices, but the worry on Wall Street is that the Fed may be moving too late. If a recession does hit, it would undercut corporate profits and erase the benefits from lower rates.

“All is not well with the labor market,” said Brian Jacobsen, chief economist at Annex Wealth Management. “The Fed wanted the labor market to come into better balance, but any balancing act is unstable.”

Still, the jobs report did include some encouraging data points. For one, the unemployment rate improved to 4.2% from 4.3% a month earlier. That was better than economists expected. And even if August’s hiring was weaker than forecast, it was still better than July’s pace.

Christopher Waller, a member of the Fed’s board of governors, said in a speech after the jobs report’s release that “I believe we should be data dependent, but not overreact to any data point, including the latest data.”

“While the labor market has clearly cooled, based on the evidence I see, I do not believe the economy is in a recession or necessarily headed for one soon,” he said.

While Waller said he thinks a “series of reductions” to rates is appropriate given that a slowing job market now looks like the bigger threat for the economy than high inflation, he said the ultimate pace and depth of those cuts is still to be determined.
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All the uncertainty sent Treasury yields on a wild ride in the bond market as traders tried to handicap the Fed’s next moves.

The two-year Treasury yield initially fell as low as 3.64% after the release of the jobs report, before quickly climbing back above 3.76%. It then dropped back to 3.66% following Waller’s comments, down from 3.74% late Thursday.

Wells Fargo Investment Institute’s Wren said he was surprised by the size of markets’ swings. While data has clearly shown a slowdown in the economy, he’s still forecasting growth to continue, “and it’s not the end of the world.” He cautioned investors against panicking and selling their investments in knee-jerk reactions.

Despite its dismal week, the S&P 500 remains just 4.6% below its all-time high set in July. It’s also still up 13.4% for 2024 so far, which counts as a good year.

A big reason for Friday’s sharp drops was weakness for some big tech stocks that had been benefiting from the AI boom.

Broadcom tumbled 10.4% despite reporting profit and revenue for the latest quarter that were above analysts’ forecasts, thanks in part to AI. The chip company said it expects to make $14 billion in revenue this quarter, which was slightly below analysts’ expectations of $14.11 billion, according to FactSet. Its stock sank 15.9% for the week.

Other chip companies also fell Friday, including a 4.1% drop for Nvidia. After soaring earlier this year as its revenue surged on the AI frenzy, Nvidia’s stock has been shaky since mid-July as investors question whether they took it too high. Because of its massive size, Nvidia’s stock is one of the most influential on Wall Street, and it fell 13.9% over the week. That’s even though Nvidia has continued to top analysts’ expectations for growth.

“Earnings growth is going to slow from an incredibly high rate to something slower,” Wren said about Big Tech, “but it’s not going to be terrible.”

On the winning side of Wall Street was U.S. Steel, which rose 4.3% after the CEO of rival Cleveland Cliffs told MSNBC that his company would still be interested in acquiring U.S. Steel if the White House were to block its proposed sale to Japan’s Nippon Steel.

All told, the S&P 500 fell 94.99 points to 5,408.42. The Dow dropped 410.34 to 40,345.41, and the Nasdaq composite lost 436.83 to 16,690.83.

In stock markets abroad, indexes fell across much of Europe and Asia. Trading was halted in Hong Kong because of a typhoon.

 

[bigdog]

ASX 200 expected to tumble​

The Australian share market looks set to tumble on Monday after a selloff on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 102 points or 1.3% lower.

Another rout hit Wall Street Friday, with formerly high-flying technology stocks again taking the brunt, after a highly anticipated update on the U.S. job market came in weak enough to add to worries about the economy.

The S&P 500 dropped 1.7% to close out its worst week since March 2023. Broadcom, Nvidia and other tech companies drove the market lower amid ongoing concerns that their prices soared too high in the boom around artificial intelligence, and they dragged the Nasdaq composite down by a market-leading 2.6%.

The Dow Jones Industrial Average dropped 410 points, or 1%, after erasing a morning gain of 250 points.