Traders on the New York Stock Exchange faced a significant sell-off on July 24, 2024, with the Dow Jones Industrial Average plunging by 716 points, marking its worst day of the year. The Dow fell 1.7%, while the S&P 500 and Nasdaq Composite declined by 1.9% and 2.9%, respectively. The Russell 2000, a small-cap benchmark, also dropped 2.4%.
Economic data released on Thursday intensified fears of a potential recession and concerns that the Federal Reserve may be slow to cut interest rates. Initial jobless claims saw their largest rise since August 2023, and the ISM manufacturing index dropped to 46.8%, indicating economic contraction. Additionally, the 10-year Treasury yield dipped below 4% for the first time since February.
This data followed the Federal Reserve’s decision the previous day to maintain interest rates at their highest levels in two decades. However, Fed Chair Jerome Powell hinted at a possible rate cut in September, offering some hope to investors. “The economic data keeps pointing towards a downturn, if not a recession, this morning,” said Chris Rupkey, chief economist at FWDBONDS, noting the stock market’s uncertainty amidst the looming recession and falling bond yields.
Stocks most vulnerable to recessionary pressures, such as JPMorgan Chase and Boeing, saw significant declines, with JPMorgan dropping 2% and Boeing more than 5%. Initially, the market opened with gains, buoyed by Meta Platforms’ strong second-quarter results and positive guidance, which sent its shares up by 4%. However, by mid-morning, most stocks had turned negative.
Even Big Tech was not spared, as Nvidia’s shares fell 8%. Investors seemed to be pulling back amidst the mounting economic uncertainty and with a pivotal November election approaching. Despite the day’s turmoil, the S&P 500 remains up 14% for the year, continuing its overall positive trajectory from July.
Original Story https://www.cnbc.com/2024/07/31/stock-market-today-live-updates.html
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