Skip to main content

Featured Post

High Drama and Big Impact: Trump’s Bold Tariff Plans and What to Expect

Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin

Nasdaq Slumps 1% as Big Tech and Chip Stocks Decline Ahead of Key Earnings

The Nasdaq dropped 1% on Tuesday as chip and megacap shares took a hit ahead of Big Tech earnings, while strength in financial stocks kept the Dow afloat in anticipation of a key US Federal Reserve policy decision this week.


Key Highlights:

  • Tech and Chip Stocks:

    • Microsoft, a frontrunner in the AI race, will release its quarterly results after markets close. Its stock was down nearly 1%.
    • Other megacap stocks, including Apple, Amazon.com, Meta Platforms, Alphabet, and Tesla, fell between 0.1% and 2%.
    • Nvidia slumped 5%, leading a decline in chip stocks and pushing the Philadelphia SE Semiconductor index down 2.4%.
  • Market Performance:

    • The Dow Jones Industrial Average rose 65.08 points, or 0.16%, to 40,605.01.
    • The S&P 500 lost 24.87 points, or 0.46%, to 5,438.67.
    • The Nasdaq Composite lost 184.53 points, or 1.06%, to 17,185.68.
    • The S&P 500 Financials index outperformed with a 1.3% jump, and a banking index climbed 1.5%.
  • Investor Sentiment:

    • Investors are cautious ahead of tech earnings scheduled through the week.
    • Coupled with Tesla's disappointing results, Alphabet's higher expenditure forecast caused a broad-based market sell-off last week.
    • "Big Tech has had a great rally and for it to continue, they're going to have to show benefits of AI and the investments they made in it," said Brian Klimke, chief market strategist at Cetera Investment Management.
  • Market Trends:

    • Hopes of early rate cuts have prompted a shift to mid- and small-cap stocks, away from tech-related sectors.
    • The Russell 2000 small-caps index advanced 0.2%, poised to outperform major US stock indices in July, while the Dow is set for its best month in 2024.
  • Federal Reserve:

    • The Fed is expected to hold rates at their highest level in over two decades this week, with traders watching for hints of potential policy easing.
    • The Job Openings and Labor Turnover Survey showed 8.18 million job openings in June, ahead of economists' expectations.
  • Corporate Results:

    • Procter & Gamble slumped 6% after missing expectations for fourth-quarter sales.
    • Merck lost 10% after cutting its annual profit forecast.
    • CrowdStrike shed 9% after a report of Delta Air Lines seeking compensation for a global cyber outage.
    • Cybersecurity and cloud services company shares jumped 11.2% after forecasting fourth-quarter results above estimates.

Market Breadth:

  • Advancing issues outnumbered decliners by a 1.16-to-1 ratio on the NYSE and by 1.31-to-1 on the Nasdaq.
  • The S&P 500 posted 62 new 52-week highs, while the Nasdaq Composite recorded 92 new highs and 80 new lows.

Conclusion: Investors remain cautious ahead of Big Tech earnings and the Federal Reserve's policy decision, influencing market movements and sector performances. The financial sector showed strength, while tech and chip stocks faced declines amid broader market uncertainty.

Comments

Popular posts from this blog

INTC Share Watch and News

Stock Info Market Monitor Company Profile Intel Corporation designs, manufactures, and sells integrated circuits for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks, desktops, servers, workstations, storage products, embedded applications, communications products, consumer electronics devices, and handhelds. The company also offers system on chip products that integrate its core processing functionalities with other system components, such as graphics, audio, and video, onto a single chip. It also provides chipset products that send data between the microprocessor and input, display, and storage devices, such as keyboard, mouse, monitor, hard drive, and CD or DVD drives; motherboards that has connectors for attaching devices to the bus, and products designed for desktop, server, and workstation platforms; and wired and wireless connectivity products, including network adapters and embedded wireless cards used to translat

3M Raises Profit Forecast After Beating Quarterly Estimates on Electronics Demand

3M Co raised the lower end of its full-year adjusted profit forecast after strong demand for electronics and industrial products helped the company surpass quarterly profit expectations. Shares of 3M were up 4.2% at $140.5 in pre-market trading. An increase in demand for electronics used in vehicles and mobile phones boosted profits for the company, which had previously faced challenges as high inflation led consumers to delay major purchases. The industrial sector is also expected to benefit from the recent US Federal Reserve decision to cut borrowing costs in September, encouraging more consumer spending. 3M has implemented cost-cutting measures, including job reductions and spinning off its healthcare business, to counter the impact of a demand slowdown . Key highlights from the report: Sales in the transportation and electronics segment grew 1.8% year-on-year. Sales in the safety and industrial segment , which produces adhesives for industrial use, increased by 0.5% . 3M&

A Trader’s Guide to Navigating Malaysia's Budget 2025

Malaysia’s consumer and construction stocks are poised to benefit from Budget 2025 , as Prime Minister Datuk Seri Anwar Ibrahim is expected to introduce measures aimed at lowering the cost of living and unveiling infrastructure projects . As both Prime Minister and Finance Minister, Anwar will likely announce targeted cash transfers , civil servant salary hikes , and potential revisions to the minimum wage to boost disposable incomes, supporting retailers like AEON Co and Padini Holdings . In the construction sector, analysts expect the budget to include new projects such as the Mass Rapid Transit Line 3 and Pan Borneo Highway , with companies like Gamuda , Sunway Construction , and IJM Corp set to benefit. There could also be updates on the Johor-Singapore High-Speed Rail and cross-border economic zones, reigniting interest in the sector. The government’s commitment to growing semiconductor industries may lead to support measures for data center developers like YTL Power Int