The overnight trading session saw Dow Jones, S&P 500, and Nasdaq futures all decline. This decline came after Apple and Amazon.com reported their earnings late, and the market awaited the July jobs report due early Friday.
The stock market experienced a sharp downturn on Thursday, undoing the previous day’s gains. Weak economic data sparked fears of a recession, leading to a drop in the 10-year Treasury yield below 4%. The Russell 2000 index suffered the most significant loss, while the S&P 500 and Nasdaq also turned lower, breaking important levels of support.
Nvidia faced a reversal from its 50-day moving average, along with many other stocks experiencing negative market breadth. Despite a strong intraday performance, Meta Platforms settled for a modest gain, while several other companies reported mixed results late Thursday.
Investors saw MELI stock, DoorDash, and Monolithic Power emerge as big winners, while Intel and Snap faced losses. Nvidia stock proved to be a standout on IBD Leaderboard.
As the market prepares for the July jobs report, futures across major indices like Dow Jones, S&P 500, and Nasdaq dropped, reflecting a sense of uncertainty among investors. The report’s release is likely to impact the direction of stock futures and Treasury yields in the upcoming trading session.
Despite the recent market volatility, some ETFs, including those focused on growth stocks and specific industries, experienced sizable declines. The ETF market strategy remains crucial in navigating the current market conditions.
Apple and Amazon reported their earnings, with Apple’s stock reacting positively while Amazon’s stock dipped late. Nvidia saw a tough reversal, mirroring the broader market’s negative sentiment towards tech stocks.
Overall, investors need to remain cautious and responsive to market signals, especially after the recent downturn. Monitoring the jobs report, forthcoming earnings reports, and overall market direction will be crucial in making informed investment decisions in the current environment.
