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Today’s Financial Markets Summary – July 22, 2024
Today’s Stock Market Activity: Winners and Losers
The S&P 500 rose Monday due to a bounce in tech shares after the broad market index suffered its worst weekly loss since April last week.
The benchmark climbed 1.1% and headed for its best day since June 5, while the Nasdaq Composite advanced 1.8%. The Dow Jones Industrial Average rose 150 points, or 0.4%.
Nvidia popped 4%, recovering some of its 8% pullback from last week. Other major tech stocks such as Meta Platforms and Alphabet also rose more than 2%. CrowdStrike was the worst performer in the S&P, dropping 13% and building on last week’s nearly 18% loss.
“We’re seeing a rotation back into the technology sector after a pretty meaningful sell-off, exacerbated by the CrowdStrike meltdown,” said Mona Mahajan, a senior investment strategist at Edward Jones. “A combination of broadening in earnings and the Fed cutting rates is giving investors some hope.”
Tech stocks were under pressure last week as investors rotated out of those names in favor of smaller names, sending the S&P 500 lower by nearly 2% last week. The Nasdaq shed more than 3% during that period.
Despite tech’s strong gains, small-cap stocks held up. The Russell 2000 traded 1% higher, adding to its 6% pop from last week.
Traders also kept an eye on the U.S. political landscape after President Joe Biden dropped out of the presidential race on Sunday and endorsed Vice President Kamala Harris. Since Biden’s disastrous debate performance in June, many analysts were seeing an increasing likelihood of a win by former President Donald Trump in November.
Earnings and central bank policy remain top of mind for Wall Street. Traders have been pricing in nearly a 93% likelihood of the Federal Reserve cutting interest rates during its September meeting.(CNBC)