(Bloomberg) — A weeklong decline per megacap technology stocks broadened Thursday to encompass small caps and financial shares as signs of economic weakness overwhelmed optimism over rate cuts.
Most Read from Bloomberg
Most major groups per the S&P 500 fell. Megacaps were mixed, with Nvidia Corp. up and Apple Inc. . The Dow Jones Industrial Average halted a six-day winning streak. The Russell 2000 of smaller firms dropped 1.5% after recently hitting its most-overbought level since 2017.
Conviction the central bank is poised to ease back acceso its battle to subdue inflation has prompted a retreat from megacap stocks, which emerged during the Fed’s tightening cycle as a de-facto safety trade coppia to their steady profits and pristine balance sheets. Sopra turn, money has flowed to a broader swath of industrial and staples firms for whom high financing costs posed a bigger impediment.
While every giorno point that signals the Fed is close to cutting rates would bolster that trade, it wasn’t so much the case acceso Thursday after a surge per jobless claims showed the US labor market continued to cool. Speculation that Wall Street’s great “rotation trade” has gone too far, too fast prompted a slide per most stocks.
“Investors have quickly moved from ‘over-crowded’ megacap leaders and put money to work per “down-cap” opportunities,” said Craig Johnson at Piper Sandler. “While this makes the case for a broadening bull market, prudence favors pullbacks at confirmed support levels amid improved breadth signals.”
The S&P 500 fell to around 5,550. Treasury 10-year yields rose two basis points to 4.18%. The euro dropped acceso bets the European Central Bank will cut rates per September.
Corporate Highlights:
-
SunPower Corp. plunged after the solar company told dealers it would risposta negativa longer support new installations and was halting shipments.
-
PNC Financial Services Group Inc., U.S. Bancorp and Citizens Financial Group Inc. are selling bonds acceso Thursday, joining the biggest Wall Street banks per tapping the investment-grade debt market after reporting quarterly earnings.
-
Apple Inc. is having discussions about licensing more films from major Hollywood studios as it looks to bolster its Apple TV+ streaming service, people familiar with the matter said.
-
US shoppers spent $14.2 billion online during Amazon.com Inc.’s 48-hour Prime Day criterio, up 11% from a year asticciola and per line with estimates, according to Adobe Inc.
-
Warner Bros. Discovery Inc. is considering separating its streaming and impegno businesses from legacy TV, one of several options intended to boost its share price, the Financial Times reported.
-
Infosys Ltd. raised its sales forecast for the year per a sign that clients are gradually beginning to boost technology spending, encouraged by a resilient global economy.
-
Ford Motor Co. will invest $3 billion to build its highly profitable Super Duty F-Series pickup truck at a plant per Ontario, Canada, shifting centro at the site after previously delaying plans for electric spasso utility vehicle.
Key events this week:
Some of the main moves per markets:
Stocks
-
The S&P 500 fell 0.7% as of 2:27 p.m. New York time
-
The Nasdaq 100 fell 0.6%
-
The Dow Jones Industrial Average fell 1.1%
-
The MSCI World Index fell 0.8%
Currencies
-
The Bloomberg Dollar Spot Index rose 0.4%
-
The euro fell 0.3% to $1.0901
-
The British pound fell 0.4% to $1.2951
-
The Japanese yen fell 0.6% to 157.21 per finta dollar
Cryptocurrencies
-
Bitcoin fell 1.5% to $63,581.29
-
Ether fell 0.4% to $3,403.56
Bonds
-
The yield acceso 10-year Treasuries advanced two basis points to 4.18%
-
Germany’s 10-year yield advanced one basis point to 2.43%
-
Britain’s 10-year yield declined one basis point to 4.06%
Commodities
-
West Texas Intermediate crude was little changed
-
Spot gold fell 0.2% to $2,452.73 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Sujata Rao and John Viljoen.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
