The S&P 500 Index faced significant pressure at the start of August due to weaker U.S. economic data, reigniting recession fears. The index dropped by 1.6%, while the Nasdaq and Dow Jones fell by 2.8% each. Initial jobless claims rose above expectations, and the ISM manufacturing index fell below forecast, sparking concerns about an economic downturn. The Federal Reserve is expected to lower interest rates next month, with Chairman Jerome Powell hinting at a potential rate cut in September.
In the tech sector, Meta Platforms saw a 5% jump in its stock following strong second-quarter earnings. However, Qualcomm slid 9% due to a revenue hit after the U.S. revoked one of its export licenses for Huawei. Arm Holdings ADR and NVIDIA Corporation also experienced declines, while Intel, Apple, and Amazon were set to report their earnings.
Moderna stock tumbled by 21% after cutting its full-year revenue guidance, while Eli Lilly gained 3% after positive trial results for its weight loss drug. These market movements highlight the impact of economic data and corporate performance on stock prices and investor sentiment.
In summary, the recent market trends reflect concerns about a potential recession and the impact of geopolitical events on tech companies and pharmaceutical firms. Investors should stay informed about economic indicators and corporate earnings to make informed decisions about their financial portfolios.