Tech stocks sold off, Dow hit record highs, concerns about interest rate cuts

From Nasdaq: 2024-07-19 14:42:49

The Dow Jones Industrial Average reached record highs, gaining 742 points in its best day in over a year. The S&P 500 and Nasdaq pulled back as investors rotated out of tech stocks. Earnings season began with reports from big banks, while hopes for a rate cut grew on Wall Street.

Tech stocks saw a rotation as investors favored cyclical stocks after news of potential interest rate cuts. Taiwan Semiconductor and Palantir Technologies hit highs, while Netflix reported strong Q2 results but issued a weak forecast. Microsoft dropped from record highs, and semiconductor stocks felt pressure from trade restrictions.

Shopify stock surged on an upgrade from Bank of America, while elf Beauty and Arm Holdings received positive analyst notes. Baxter International was downgraded, and Gap was named a “top pick”. Analysts made various rating adjustments in the brokerage sector this week.

Next week promises a slew of economic data and earnings reports as July winds down. Investors can use Schaeffer’s Expectational Analysis® to navigate the volatility of earnings season. Market sentiment and small-cap outperformance are key topics discussed by Schaeffer’s analysts Todd Salamone and Rocky White.



Read more at Nasdaq: Tech Selloff, Dow Rally Highlight Volatile Week