A mixed trend also prevailed in the current session of the Wall Street with the S&P 500 index recording losses after declines in major technology companies, pending second-quarter results after the market close. Of course, all eyes are on Washington, as the Federal Reserve begins its two-day meeting.
THE S&P 500 fell 0.5% closing at 5,436.44 units, while o Nasdaq closed with losses of 1.28% at 17,147.42 units. THE Dow Jones increased by 203.40 points or 0.5% to 40,743.33 points.
Nvidia stock fell more than 7%, while Microsoft fell 0.7%. Other big names from the tech industry also fell, including Amazon, Netflix and Apple.
This is a very important week for big tech results. Microsoft is expected to report results after the close on Wall Street. Meta, Amazon and Apple will announce their results on Wednesday and Thursday.
So far, the timing of corporate results has proven strong. Of the more than 230 names in the S&P 500 that reported results, 80% beat analysts’ expectations, according to FactSet data.
“We’ve seen the rate of revenue growth expand. When it comes to the profitability of technology companies, the bar is very high. If there’s any disappointment in AI investment, we’ll see stocks pull back. And we’re ready for to correct the market,” said Mona Mahajan, strategist at Edward Jones.
At the Fed meeting tomorrow, investors expect Chairman Jerome Powell to signal the timing and number of interest rate cuts expected in the coming months. Traders give 100% chance of rate reduction in September.
CrowdStrike stock has fallen about 10% since Delta Airlines hired attorney David Boyes to seek compensation from a technical problem caused by the company’s cybersecurity systems. CrowdStrike stock fell more than 40% in July, its worst monthly performance ever.
Merck fell 10% as a weak outlook for the company overshadowed strong second-quarter results. Procter & Gamble lost 4.8% after revenue fell more than expected due to sluggish demand in China.