Stock Market News Recap: July 18, 2024

Key Highlights

1. Tech stocks are having a tough time, with the Nasdaq Composite seeing its worst day since 2022.
2. The broader market isn’t doing well either, as the Dow Jones Industrial Average has dropped by more than 500 points.
3. People are hopeful about rate cuts from the Federal Reserve, thinking it might help the stock market bounce back.
4. Small caps and cyclical names got a boost from lower borrowing costs but faced challenges after big wins.
5. There’s been a noticeable move away from tech stocks because of how badly they’ve done recently; in fact, Nasdaq had its roughest day in almost two years.
6. With most sectors of the S&P 500 going down too, nine out of ten members of Dow Jones experienced losses.
7. Even though there was a sell-off happening everywhere else, Russell 2000 managed to go up by 3.5% over five trading days.
8. The Dow is somehow still on track for gains this week alone while both S&P 500 and Nasdaq Composite have gone down since Monday started.
9. Looking forward to those rate cuts could mean good news for small businesses but also lead some people to cash out their profits early in tech investments

Recap of Stock Market News on July 18, 2024

On July 18, 2024, the stock market took a big hit, especially in tech stocks. The Dow Jones Industrial Average went down by over 500 points to settle at 40,665.02. Meanwhile, the S&P 500 fell by about 0.78%, ending up at 5,544.59 and the Nasdaq Composite dropped around .70%, closing at17 ,87122.

A key reason behind this downturn was talk of an upcoming rate cut from the Federal Reserve in September This news made people more hopeful about the broader market which led them to move their money away from high-flying tech companies towards smaller companies and those that do better when borrowing is cheaper However these sectors also saw some losses after having done well for a while

The Nasdaq had its worst day since December last year showing just how much investors are moving away from technology stocks In fact it was such a bad day for Nasdaq but not so much for Dow Jones making it look like what happened back in2001 where we saw similar patterns Almost every sector except one out of eleven withintheS& P50 ended lower And nearly all members oftheDowJones faced declines too

Despite everything going on Russell20 has been doing quite well lately thanks to hopes tiedto interest rate cuts It’s gone up3%injustthelastfive trading days This index mainly looksat small-capstocksand gives usanideaofwhatinvestorsarefeeling Right now though onlythedow seems tobegoingupfortheweek withmorethan1%gain Ontheotherhand boththes&p50andnasda have seen drops sincethebeginningoftheweekwiths&p fallingover1 %andanearly3%dipinnasda becauseoft hebigmoveawayfromtechstocks

Major Indices Performance Overview

Let’s take a closer look at the performance of major indices on July 18, 2024. The Nasdaq Composite, which is heavily weighted towards technology stocks, experienced a decline of 0.70% and closed at 17,871.22. The Dow Jones Industrial Average, which represents 30 large and well-established companies, slid 1.29% and closed at 40,665.02. The S&P 500, a broad-based index that includes 500 leading companies across various sectors, dropped 0.78% and closed at 5,544.59.

Here is a text table summarizing the performance of major indices:

While the Nasdaq Composite experienced its worst day in nearly two years, the Dow Jones Industrial Average managed to register a gain, highlighting the shift in market sentiment away from technology stocks. The S&P 500, which represents a broader range of companies, also traded lower.

Top Performing Stocks and Sectors

Even though the stock market took a hit on July 18, 2024, not everything was gloomy. With chip stocks and tech stocks leading the way, it’s clear that folks are still pretty keen on technology. Asian Paints also did really well for itself, riding high thanks to lots of demand and good vibes from the market.

On this day, most parts of the S&P 500 didn’t do too hot, showing us that this dip wasn’t just about a few unlucky players but more about investors playing it safe across the board.

Significant Declines and Underperforming Sectors

On July 18, 2024, a lot of different areas in the market and specific stocks saw their values go down. One big reason for this was oil prices going up and down a lot, which made investors feel unsure.

With financial services not doing so well on that day too because they were priced pretty high and people were worried about possible rate cuts making things worse for these kinds of stocks.

It’s worth mentioning that this drop wasn’t just happening in one or two places. Except for one out of the 11 sectors in the S&P 500, every other sector also went down. This shows us that people all over the market were feeling cautious, not just about certain parts.

Earnings Highlights from Key Companies

On July 18, 2024, a bunch of important companies shared their earnings for the quarter. This info gives us a peek into how jobs are doing and what’s happening with the economy as a whole.

With jobless claims reaching their highest point since November 2021, it looks like fewer people are finding work easily. This makes folks think that the Federal Reserve might lower interest rates soon.

In terms of company performance, even though tech stocks took a hit before this report came out, some businesses like Taiwan Semiconductor Manufacturing (TSMC) did really well. They made more money than everyone thought they would because there’s still a big demand for AI chips. So it seems not all parts of the tech world are struggling.

All in all, these quarterly results tell us quite a bit about where things stand with jobs and which way interest rates might go. Keeping an eye on both can help us understand market trends better.

Economic Indicators Influencing Market Movements

On July 18, 2024, the stock market was influenced by several key economic indicators. Among them, the number of people continuing to apply for unemployment benefits hit its highest point since November 2021. This high level suggests that fewer jobs are available and hints at a slowing labor market. Because of this slowdown, many believe the Federal Reserve might lower interest rates.

Every week on Thursday morning, the Department of Labor shares updates about these applications. The rise in ongoing claims last Thursday raised worries about job availability and how it could affect people’s investment choices.

In essence, these economic signs give us clues about where the economy might be heading and how it could influence investments in stocks. With unemployment benefits reaching their highest mark recently, there’s growing speculation that we’ll see rate cuts soon due to concerns over employment opportunities.

Conclusion

To wrap things up, it’s really important to keep up with what’s happening in the stock market if you want to make smart choices about your investments. By looking into the main points, how well different parts of the market are doing, which sectors are on top, and key earnings info, investors can get a good sense of direction for moving around in the market. It’s also crucial to get how economic signs work and how they make the market go up or down. Staying updated with all this stock market news helps investors plan out their investment strategies better so they can grab opportunities when they see them and avoid potential losses. Keep an eye out for more updates that could help you with making decisions about your money.