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Wall Street closed slightly lower on Tuesday, correcting from the previous session’s tech rally. Oil prices fell to a six-week low, weighing down on the markets. All of the three major stock indexes ended in the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 57.35 points, or 0.1%, to close at 40,358.09. Eighteen components of the 30-stock index ended in negative territory, while 12 ended in positive.
The tech-heavy Nasdaq Composite lost 10.22 points, or less than 0.1%, to close at 17,997.35.
The S&P 500 dipped 8.67 points, or 0.2%, to close at 5555.74. Nine of the 11 broad sectors of the benchmark index closed in the red. The Energy Select Sector SPDR (XLE), the Utilities Select Sector SPDR (XLU) and the Consumer Discretionary Select Sector SPDR (XLY) lost 1.6%, 0.6% and 0.5%, respectively, while the Materials Select Sector SPDR (XLB) gained 0.4%.
The fear-gauge CBOE Volatility Index (VIX) decreased 1.3% to 14.72. A total of 10.5 billion shares were traded on Tuesday, lower than the last 20-session average of 11.3 billion.
Markets Display Holding Pattern Ahead of Mega-Cap Tech Earnings
On Tuesday, the tech sector pared some of the gains made on Monday, ahead of big tech earnings. The Technology Select Sector SPDR (XLK) slid 0.4% despite most of the megacaps trading higher through the session. Mega-cap growth stocks like tech usually do well when inflation seems to be coming down, and the outlook looks better.
However, the small cap-focused Russell 2000 rose for the second straight session on Tuesday, adding to last week’s gain. This implies that investors are shifting money to these stocks while the tech boom is underway. With the Magnificent 7 companies already starting to report earnings, it will be interesting to observe whether this pattern continues. Apart from mega-caps, Materials emerged as the biggest gaining sector of the day.
Oil Prices Fall to a 6-Week Low on Ceasefire Talks
Human misfortune often has an opposite impact on markets, and the war in Gaza is a prime example. A conflict in an oil-heavy region like the Middle East has enabled investors to price in the risk of potential disruptions to global crude supply.
However, with Israeli Prime Minister Benjamin Netanyahu slated to meet President Biden in the White House on Thursday, talks of a ceasefire being on the cards are gaining ground. The plan, which is formulated by the United States and is mediated by Egypt and Qatar has gained momentum over the last few weeks. This would mean an end to the supply concerns, and oil prices fell to their lowest since Jun 7 on the possibility. Energy became the biggest losing sector on Wall Street on Tuesday.
Brent crude fell $1.39, or 1.7%, to settle at $81.01/barrel, while WTI crude fell $1.44, or 1.8%, to settle at $76.96/barrel.
Economic Data
Per the National Association of Realtors, existing home sales for June decreased to 3.89 million units sold. The number for May remained unrevised at 4.11 million units sold.
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Stock Market News for Jul 24, 2024
Wall Street closed slightly lower on Tuesday, correcting from the previous session’s tech rally. Oil prices fell to a six-week low, weighing down on the markets. All of the three major stock indexes ended in the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 57.35 points, or 0.1%, to close at 40,358.09. Eighteen components of the 30-stock index ended in negative territory, while 12 ended in positive.
The tech-heavy Nasdaq Composite lost 10.22 points, or less than 0.1%, to close at 17,997.35.
The S&P 500 dipped 8.67 points, or 0.2%, to close at 5555.74. Nine of the 11 broad sectors of the benchmark index closed in the red. The Energy Select Sector SPDR (XLE), the Utilities Select Sector SPDR (XLU) and the Consumer Discretionary Select Sector SPDR (XLY) lost 1.6%, 0.6% and 0.5%, respectively, while the Materials Select Sector SPDR (XLB) gained 0.4%.
The fear-gauge CBOE Volatility Index (VIX) decreased 1.3% to 14.72. A total of 10.5 billion shares were traded on Tuesday, lower than the last 20-session average of 11.3 billion.
Markets Display Holding Pattern Ahead of Mega-Cap Tech Earnings
On Tuesday, the tech sector pared some of the gains made on Monday, ahead of big tech earnings. The Technology Select Sector SPDR (XLK) slid 0.4% despite most of the megacaps trading higher through the session. Mega-cap growth stocks like tech usually do well when inflation seems to be coming down, and the outlook looks better.
However, the small cap-focused Russell 2000 rose for the second straight session on Tuesday, adding to last week’s gain. This implies that investors are shifting money to these stocks while the tech boom is underway. With the Magnificent 7 companies already starting to report earnings, it will be interesting to observe whether this pattern continues. Apart from mega-caps, Materials emerged as the biggest gaining sector of the day.
On the day, shares of Amazon.com, Inc. (AMZN - Free Report) and Smurfit Westrock Plc (SW - Free Report) rose 2.1% and 2.3%, respectively. Amazon currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Oil Prices Fall to a 6-Week Low on Ceasefire Talks
Human misfortune often has an opposite impact on markets, and the war in Gaza is a prime example. A conflict in an oil-heavy region like the Middle East has enabled investors to price in the risk of potential disruptions to global crude supply.
However, with Israeli Prime Minister Benjamin Netanyahu slated to meet President Biden in the White House on Thursday, talks of a ceasefire being on the cards are gaining ground. The plan, which is formulated by the United States and is mediated by Egypt and Qatar has gained momentum over the last few weeks. This would mean an end to the supply concerns, and oil prices fell to their lowest since Jun 7 on the possibility. Energy became the biggest losing sector on Wall Street on Tuesday.
Brent crude fell $1.39, or 1.7%, to settle at $81.01/barrel, while WTI crude fell $1.44, or 1.8%, to settle at $76.96/barrel.
Economic Data
Per the National Association of Realtors, existing home sales for June decreased to 3.89 million units sold. The number for May remained unrevised at 4.11 million units sold.