On Friday morning, Dow Jones futures, S&P 500 futures, and Nasdaq futures all experienced a significant decline. Apple’s stock edged higher after reporting earnings, while Amazon.com saw a drop as the market awaited the release of the July jobs report.
The previous day had seen a shift in market expectations, with weak economic data contributing to fears of a looming recession. This led to a sharp downturn in the stock market rally, with the Russell 2000 experiencing the largest losses. Nvidia and Meta Platforms also saw reversals in their stock prices, despite initial gains from earnings reports.
A number of companies, including Coinbase, Vertex Pharmaceuticals, MercadoLibre, Monolithic Power, DoorDash, Snapchat parent Snap, and Intel, released their earnings Thursday night, with mixed results. Oil giants Exxon Mobil and Chevron also reported early Friday, with varying outcomes.
The market saw a general decline in futures trading, with key stocks like Apple and Amazon being affected. The upcoming July jobs report was expected to have an impact on Dow futures and Treasury yields, potentially dictating market movements.
Following a day of bearish reversals on Thursday, investors were urged to heed market signals and exercise caution. The VIX reached a three-month high, indicating heightened market fear. While some ETFs saw losses, there were pockets of resilience in certain sectors.
Earnings reports from tech giants like Apple and Amazon had a notable impact, with both companies experiencing fluctuations in their stock prices. Nvidia’s stock, after an initial gain, faltered significantly, signaling uncertainty within the chip sector.
Overall, investors were advised to remain vigilant amid the changing market conditions and to closely monitor economic indicators and earnings reports for guidance on future investment decisions.
