As of July 18, 2024, 5:26 PM EDT
U.S. stocks took a significant hit on Thursday, reversing earlier gains as investors shifted away from high-priced megacap growth stocks amid the intensifying second-quarter earnings season. All three major U.S. stock indexes closed in the red, with the Dow Jones Industrial Average experiencing the steepest drop, ending a streak of consecutive record highs.
Key Highlights:
Major Index Performance: The Dow fell by 1.29%, the S&P 500 decreased by 0.78%, and the Nasdaq dropped by 0.70%.
Sector Movements: The S&P 500’s healthcare sector saw the largest decline, while energy stocks were the only gainers.
Volatility Index: The CBOE Market Volatility Index, often referred to as the “fear index,” reached its highest level since early May, indicating heightened market anxiety.
Notable Stock Movements:
Netflix (NASDAQ: NFLX): Shares dipped in after-hours trading following its quarterly results.
Domino’s Pizza (NYSE: DPZ): The stock plummeted by 13.6% after missing estimates for quarterly same-store sales.
Warner Bros Discovery (NASDAQ: WBD): Shares jumped 2.4% amid reports of a potential plan to split its digital streaming and studio businesses from its traditional TV networks.
Market Sentiment:
Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York, observed a broad market sell-off. He noted that recent sector rotations into midcaps and smallcaps have reversed, with investors opting to pull back and cash out after a significant run.
“Investors are uncertain about future political developments and economic conditions,” Ghriskey commented. “The market is flailing, trying to find direction.”
Economic Indicators:
The latest initial jobless claims data exceeded analysts’ expectations, signaling a softening labor market. This trend is seen as a necessary step toward controlling inflation, according to the U.S. Federal Reserve.
Trading Volume:
Volume on U.S. exchanges was 12.14 billion shares, slightly above the average of 11.8 billion over the past 20 trading days. Declining issues outnumbered advancing ones on both the NYSE and Nasdaq, reflecting the day’s negative sentiment.
As market dynamics continue to evolve, stay tuned for further updates and insights.
by Steve Macalbry
Senior Editor,
BestGrowthStocks.Com
Disclaimer: The author of this article is not a licensed financial advisor. This article is intended for informational purposes only. It should not be considered financial or investment advice. We do not hold any form of equity in the securities mentioned in this article. Always consult with a certified financial professional before making any financial decisions. Growth stocks carry a high degree of risk, and you could lose your entire investment.
