S&P 500 and Nasdaq 100 hit record highs, but market sentiment turns negative

From Nasdaq: 2024-07-03 16:42:29

Stock indexes closed mixed on Wednesday, with the S&P 500 and Nasdaq 100 hitting record highs. T-note yields fell on weaker-than-expected economic news, raising hopes for interest rate cuts. The labor market showed signs of weakness, with weekly continuing unemployment claims at a 2-1/2 year high. The US trade deficit widened, contributing to negative market sentiment.

US mortgage applications fell, and the average 30-year fixed rate mortgage rose. June ADP employment change missed expectations, as did weekly initial unemployment claims. May factory orders fell unexpectedly. The ISM services index showed the steepest contraction in 4 years. The FOMC minutes indicated officials are monitoring inflation before considering rate cuts.

Overseas stock markets settled mixed, with the Euro Stoxx 50 up and China’s Shanghai Composite down. Japan’s Nikkei Stock 225 Index hit a 3-month high. T-notes rallied on dovish Fed policy sentiment, spurred by weak labor market and services data. European government bond yields fell, and Eurozone PPI and PMI data missed expectations.

Stock movers included Paramount Global and Tesla, which saw significant gains. Mining stocks rose as commodity prices surged. Tech stocks like Nvidia and Broadcom also saw gains. Healthcare stocks like Humana and UnitedHealth Group retreated, while cryptocurrency-related stocks fell. Azek Co. and Charter Communications closed down after downgrades.

Upcoming earnings reports on 7/5 include Amer Sports Inc and Park Aerospace Corp. Market news continues to be influenced by economic data, trade tensions, and speculation over potential rate cuts by the Fed. Overall, the market remains cautious, reacting to a mix of positive and negative indicators.



Read more at Nasdaq: S&P 500 and Nasdaq 100 Post Record Highs on Fed Rate Cut Hopes