Market Recap (8/4/24)
Market Recap of the Week of Jul 29, 2024 - Aug 2, 2024
Source: Apple Stocks Application
Overall Market Trends:
Last week, the stock market stayed relatively steady before slumping during Thursday and Friday’s trading sessions. The New York Stock Exchange declined 380 points (-2.05%), the S&P 500 fell 121 points (-2.21%), the NASDAQ Composite slid 665 points (-3.81%), and the Dow Jones Industrial Average posted weekly losses of 752 points (-1.86%). These results were largely influenced by Federal Reserve policy meeting results, earning reports, and new economic data.
On Monday, stocks increased slightly as investors braced for Big-Tech earnings this week. Tesla rose nearly 6%, and Morgan Stanley named Tesla one of the top stocks to invest in. Furthermore, ON Semiconductor rose over 11% on better-than-expected earnings.
The market moderately fell on Tuesday as investors continued to prepare for Big-Tech earnings. Nvidia slid nearly 7% while other big-tech companies also declined on the day.
The Federal Reserve concluded on Wednesday to keep rates steady as expected but highlighted the progress made with inflation and the likelihood of a rate cut in September. This news, combined with investors reinvesting in mega-cap companies, caused markets to soar: the S&P 500 rose over 1.5% and the NASDAQ Composite rose over 2.5%.
New economic data sparked fears of the start of a global recession. Initial Jobless claims rose the most since August 2023 and the ISM Manufacturing Index came in at 46.8%, lower than expected and a general sign of a recession. Some believe the Federal Reserve could be too late to begin rate cuts.
Stocks sank Friday as more data was released. A jobs report Friday showed that job growth came in way lower than expected, further causing panic about a potential recession. The unemployment rate rose to 4.3%, the highest since October 2021, and Nonfarm payroll jobs grew only by 114,000 in July, far less than the 185,000 estimate and the 179,000 in June. Furthermore, treasury yields fell to lows last seen in December.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Monday: S&P final U.S. services PMI; ISM services
Tuesday: U.S. trade deficit
Wednesday: Consumer credit
Thursday: Initial jobless claims; Wholesale inventories
Future Earnings Reports: