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Wall Street closed mixed on Thursday, weighed down by tech stocks. Market participants are waiting for inflation numbers, slated to be released on Friday, that are expected to facilitate the Fed’s interest rate cut decisions. One of the three most widely followed indexes closed the session in the red, one closed in the green and one remained virtually unchanged.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 243.63 points, or 0.6%, to close at 41,335.05. Twenty-eight components of the 30-stock index ended in positive territory, while three ended in negative. This was the benchmark index’s highest-ever close.
The tech-heavy Nasdaq Composite lost 39.60 points, or 0.2%, to close at 17,516.43.
The S&P 500 declined 0.22 points, remaining virtually unchanged, to close at 5,591.96. Seven of the 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Financials Select Sector SPDR (XLF) and the Industrials Select Sector SPDR (XLI) increased 1.3%, 0.9% and 0.7%, respectively, while the Technology Select Sector SPDR (XLK) declined 0.9%.
The fear-gauge CBOE Volatility Index (VIX) decreased 8.5% to 15.65. A total of 10.5 billion shares were traded on Thursday, lower than the last 20-session average of 11.6 billion. Advancers outnumbered decliners by a 2.1-to-1 ratio on the S&P 500.
NVIDIA Earnings Weigh on Markets
Throughout the week, trade has been dominated by expectations surrounding chipmaking giant NVIDIA Corporation’s (NVDA - Free Report) earnings call set for after-hours on Wednesday. And while the company did actually report pretty impressive growth, these expectations were so sky-high that the company’s stock fell 6.4% regardless.
NVIDIA’s revenues jumped 122% year over year to $30 billion, up from $13.5 billion. Its data center revenues, the centerpiece of the world’s AI optimism, topped out at $26.3 billion, a 154% year-over-year increase. However, the numbers still fell short of what the market participants were expecting from the tech behemoth. Its stock slid, taking the tech sector down with it.
Investors are keeping a close watch on the Friday release of the Fed’s favorite inflation metric, the Personal Consumption Expenditure (PCE) index for July. Currently, CME’s FedWatch Tool predicts a 67% probability that the central bank would go for a 25-bps rate reduction in its September meeting. Also, a 33% weightage has been provided to a 50-bps rate cut. The PCE numbers would provide a clearer and more definitive picture of the Fed’s policymaking going forward.
Economic Data
The Labor Department said on Thursday that initial jobless claims were 231,000, decreasing 2,000 for the week ended Aug 24 from the previous week’s revised level. The prior week’s number was revised up by 1,000 to 233,000. The four-week moving average was 231,500, marking a fall of 4,750 from the previous week’s revised average. The prior week's average was revised up by 250 from 236,000 to 236,250.
Continuing claims came in at 1,868,000 for the week ended Aug 17, increasing 13,000 from last week’s revised level. The previous week's level was revised down by 8,000 from 1,863,000 to 1,855,000. The four-week moving average was 1,863,250, a decrease of 250 from the prior week's revised average. Last week's average was revised down by 2.000 from 1,865,500 to 1,863,500.
Per the National Association of Realtors, pending home sales for July fell 5.5%. The number for June remained at an unrevised increase of 4.8%.
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Stock Market News for Aug 30, 2024
Wall Street closed mixed on Thursday, weighed down by tech stocks. Market participants are waiting for inflation numbers, slated to be released on Friday, that are expected to facilitate the Fed’s interest rate cut decisions. One of the three most widely followed indexes closed the session in the red, one closed in the green and one remained virtually unchanged.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 243.63 points, or 0.6%, to close at 41,335.05. Twenty-eight components of the 30-stock index ended in positive territory, while three ended in negative. This was the benchmark index’s highest-ever close.
The tech-heavy Nasdaq Composite lost 39.60 points, or 0.2%, to close at 17,516.43.
The S&P 500 declined 0.22 points, remaining virtually unchanged, to close at 5,591.96. Seven of the 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Financials Select Sector SPDR (XLF) and the Industrials Select Sector SPDR (XLI) increased 1.3%, 0.9% and 0.7%, respectively, while the Technology Select Sector SPDR (XLK) declined 0.9%.
The fear-gauge CBOE Volatility Index (VIX) decreased 8.5% to 15.65. A total of 10.5 billion shares were traded on Thursday, lower than the last 20-session average of 11.6 billion. Advancers outnumbered decliners by a 2.1-to-1 ratio on the S&P 500.
NVIDIA Earnings Weigh on Markets
Throughout the week, trade has been dominated by expectations surrounding chipmaking giant NVIDIA Corporation’s (NVDA - Free Report) earnings call set for after-hours on Wednesday. And while the company did actually report pretty impressive growth, these expectations were so sky-high that the company’s stock fell 6.4% regardless.
NVIDIA’s revenues jumped 122% year over year to $30 billion, up from $13.5 billion. Its data center revenues, the centerpiece of the world’s AI optimism, topped out at $26.3 billion, a 154% year-over-year increase. However, the numbers still fell short of what the market participants were expecting from the tech behemoth. Its stock slid, taking the tech sector down with it.
Consequently, shares of QUALCOMM Incorporated (QCOM - Free Report) and Alpha and Omega Semiconductor Limited (AOSL - Free Report) fell 1.4% and 1.6%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Investors Keenly Await PCE Inflation Numbers
Investors are keeping a close watch on the Friday release of the Fed’s favorite inflation metric, the Personal Consumption Expenditure (PCE) index for July. Currently, CME’s FedWatch Tool predicts a 67% probability that the central bank would go for a 25-bps rate reduction in its September meeting. Also, a 33% weightage has been provided to a 50-bps rate cut. The PCE numbers would provide a clearer and more definitive picture of the Fed’s policymaking going forward.
Economic Data
The Labor Department said on Thursday that initial jobless claims were 231,000, decreasing 2,000 for the week ended Aug 24 from the previous week’s revised level. The prior week’s number was revised up by 1,000 to 233,000. The four-week moving average was 231,500, marking a fall of 4,750 from the previous week’s revised average. The prior week's average was revised up by 250 from 236,000 to 236,250.
Continuing claims came in at 1,868,000 for the week ended Aug 17, increasing 13,000 from last week’s revised level. The previous week's level was revised down by 8,000 from 1,863,000 to 1,855,000. The four-week moving average was 1,863,250, a decrease of 250 from the prior week's revised average. Last week's average was revised down by 2.000 from 1,865,500 to 1,863,500.
Per the National Association of Realtors, pending home sales for July fell 5.5%. The number for June remained at an unrevised increase of 4.8%.