Traders on the floor of the New York Stock Exchange witnessed significant declines during morning trading on July 31, 2024, as a dismal jobs report for July raised recession fears. U.S. stock futures dropped sharply, with Dow Jones Industrial Average futures falling 475 points (1.2%), after an already tough session that saw a 495-point loss. Futures for the S&P 500 and Nasdaq 100 also saw declines of 1.6% and 2.3% respectively, pointing towards a disappointing week for all three indexes.
The U.S. Labor Department reported that nonfarm payrolls increased by only 114,000 in July, falling short of the expected 185,000 and reflecting a slowdown from June’s 179,000. Additionally, the unemployment rate rose to 4.3%, its highest since October 2021.
In premarket trading, Amazon shares plunged 9% after failing to meet revenue expectations for the second quarter and delivering a bleak forecast. Intel shares plummeted nearly 24% following weak guidance and news of layoffs. Despite a fiscal third-quarter earnings beat, Apple shares edged lower, joining other tech stocks in suffering losses after the weak jobs data. Nvidia declined 5% in premarket trading after a 6% drop the previous day.
The economic concerns extended to sectors most vulnerable to a recession. Bank of America shares declined 2%, and Caterpillar also saw losses. The 10-year Treasury yield hit its lowest point since February, as investors sought the relative safety of bonds.
The stock pullback adds to Thursday’s steep losses, with the Dow and S&P 500 each falling over 1%, and the Nasdaq dropping 2.3%. International markets felt the impact too, with Japan’s Nikkei falling 5.8% overnight.
Earlier in the week, a brief rally occurred when the Federal Reserve hinted at a potential rate cut in September, yet held rates steady. With the disappointing job data, some investors now speculate that the Fed delayed too long in altering monetary policy, according to Quincy Krosby of LPL Financial.
Concerns are mounting about the broader economic outlook, affecting even small-cap stocks that had recently rallied. The Russell 2000 suffered a 3% drop on Thursday, its worst session since February, and fell another 3% in premarket trading Friday.
Arnim Holzer from EAB Investment Group noted that increased market volatility is expected, with risks posed by potential tech sector disappointments.
Original Story https://www.cnbc.com/2024/08/01/stock-market-today-live-updates.html
Category :
Tags:
