Market Turmoil and Tech Sector Struggles
A rough day on the street saw the Nasdaq and S&P 500 nosedive to their lowest points in 2024, reminiscent of the disastrous drop back in September 2022. The Dow, not one to sit out a market melee, followed suit with a sharp 504-point plunge, breaching the psychological barrier of 40,000. Tech juggernauts like Nvidia (NVDA), Microsoft (MSFT), and Meta Platforms (META) were hit hard by sector-wide weakness triggered by disappointing earnings reports from Alphabet (GOOGL) and Tesla (TSLA). As expected, the Cboe Volatility Index (VIX) registered its most substantial percentage leap since May 2022, highlighting the severe jitters among investors.
Today’s Market Insights
- Key focus on two crypto stocks amid the rise of Ethereum (ETH).
- An exploration of how option traders navigated through the Tesla profit shortfall.
- An analysis of the struggles facing Alphabet; a preview of McDonald’s earnings; and the resilience of AT&T amidst the storm.
Key Highlights of the Day
- An overview of a robust U.S. economy during the summer according to S&P surveys (MarketWatch).
- Emergence of a wealth gap in the real estate sector favoring the ultra-rich (Bloomberg).
- Insight into the GOOGL selloff triggered by YouTube revenue performance.
- Discussion on the repercussions following the UPS stock downgrade post an earnings miss.
- Exploration of how AT&T stock managed to defy the broader market’s downward spiral.
Updates on Commodity Market Movements
Oil prices rallied as U.S. crude supplies declined for the fourth consecutive week, propelling September-dated West Texas crude up by 0.8% to close at $77.59 per barrel. Meanwhile, gold prices capitalized on the tech market turmoil and a weaker U.S. dollar, with August-dated gold futures climbing 0.6% to settle at $2,426.60 per ounce for the day.
