Tech stocks struggle as Nasdaq falls over 1%, TSMC outperforms, labor market cooling.

From Yahoo Finance: 2024-07-18 12:06:27

Tech stocks struggled to rebound on Thursday after the Nasdaq posted its worst day since 2022, with the index falling over 1%. The S&P 500 and Dow Jones also slipped 0.7% and 0.4% respectively. TSMC outperformed expectations with a 36% jump in profit, raising confidence in the AI boom. Meanwhile, the labor market showed signs of cooling, with continuing unemployment applications at the highest level since November 2021.

Healthcare and Technology stocks led major averages lower, while Energy stocks rose. Continued rotation out of tech stocks caused the Nasdaq and S&P 500 to near session lows, with the Nasdaq down nearly 1%.

After a brief rebound attempt, tech stocks flipped into red territory on Thursday as the Nasdaq and S&P 500 fell below the flatline. However, the Dow Jones rose to reach intraday highs, indicating broadening market dynamics beyond Big Tech names.

The markets rebounded slightly on Thursday after heavy losses in the prior session, as TSMC’s solid quarterly results calmed fears of semiconductor turbulence. Jobless claims came in higher than expected, signaling a cooling labor market where unemployed workers struggle to find new jobs.



Read more at Yahoo Finance: Nasdaq slips as tech rout continues