Nasdaq nears correction due to weak jobs report and disappointing forecasts from Amazon and Intel.

From MarketSite by Nasdaq: 2024-08-02 11:44:37

The Nasdaq Composite is nearing a correction as it drops over 10% from its July peak due to weak employment numbers and disappointing forecasts from Amazon and Intel. The Labor Department’s report revealed a rise in nonfarm payrolls by 114,000 in July, below the expected 175,000, with the unemployment rate hitting 4.3%, fueling speculation about a half-percentage-point rate cut by the Federal Reserve. Major indices like the S&P 500 and Dow faced significant declines, with tech stocks, including Amazon, Intel, Nvidia, and Broadcom, also experiencing drops.

Amazon reported slowing online sales growth, leading to an 11.7% stock decrease, while Intel’s third-quarter revenue forecast missed estimates and included a dividend suspension, causing a 26.7% drop. Other chip stocks, like Nvidia and Broadcom, saw notable losses, impacting the overall market sentiment. Apple managed a small increase of 2.3%, supported by better-than-expected iPhone sales, but the tech sector overall faced broad declines, with Microsoft, Alphabet, and Meta also observing drops. Wall Street’s “fear gauge” hit its highest level since last October, indicating increased market volatility.



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