Market Recap (7/21/24)
Market Recap of the Week of Jul 15, 2024 - Jul 19, 2024
Source: Apple Stocks Application
Overall Market Trends:
Last week, the stock market faced major selloffs leading to 2 out of the 4 major indices taking large hits. The NASDAQ Composite fell an astonishing 789 points (-4.26%), and the S&P 500 similarly fell an astounding 137 points (-2.42%). Despite starting the week off strong, the NYSE Composite ended the week down 116 points (-0.63%). The sole winner was the Dow Jones Industrial Average which posted weekly gains of just 54 points (+0.13%). This week features lots of ups and downs for various sectors due to the belief of an incoming rate cut
Markets pushed higher on Monday as investors reacted to the attempted assassination attempt on former president Donald Trump. Markets showed that investors believed that the unsuccessful attempt will lead to larger gains in the polls come election day. Goldman Sachs commented that a second Trump term could be good for small-cap companies as they rose during his 2016 term. This caused small-cap companies to rise on the day as the Russell 2000 index rose 1.8% on just Monday. Trump Media & Technology Group Corp (NASDAQ: DJT) rose as much as 80% in pre-market trading in response to the attempt. However, as the day proceeded, it trended down from its highs and finished the day up 32%.
As rate cuts continue to come closer into view (investors believe it is very likely that the September policy meeting will result in a rate cut), investors have begun to sell Big-Tech stocks and shift to small-cap companies. This caused the Russell 2000 to rise nearly 3% and the Dow Jones to jump 1.85% on Tuesday.
This shift continued into Wednesday’s session as investors continued to rotate out of tech stocks. Due to this, the NASDAQ Composite fell 2.77% and the S&P 500 fell 1.39% on Wednesday. Meta slid by 5.7%, Apple fell by 2.5%, and Microsoft and Netflix both fell by 1.3%. In a similar fashion, the semiconductor sector was also hit hard as Nvidia fell 6.62% and Taiwan Semiconductor (NYSE: TSM) lost nearly 8%.
Thursday featured massive sell-offs and profit-taking causing the market to fall. Friday also continued the week's trend: selloffs, profit-taking, and shifting to companies that an interest rate cut will highly impact.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Tuesday: S&P flash U.S. services PMI
Wednesday: New home sales
Thursday: GDP; Durable-goods orders
Friday: Personal Consumption Expenditures (PCE); Core PCE; Consumer Sentiment (final)
Future Earnings Reports: