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On July 9, 2021, an elderly man carries a dog in a wheelchair across a road while buying veggies at a market in Shenyang, Liaoning Province, China.
Getty Images/AFP/AFP/AFP/AFP/AFP/AFP/AFP/AFP
Chipmaker and tech companies had a bad day on Thursday, dropping in the afternoon and never recouping their losses before the close. Other sectors’ stocks were neutral at the end of the regular session. The Dow Jones Industrial Average increased by 54 points, or 0.15 percent, while the S&P 500 index fell by 0.3 percent. The Nasdaq Composite, which is heavily weighted in technology, declined 0.7 percent, while the Technology Select Sector SPDR Exchange-Traded Fund (XLK), which is traded on the NYSE Arca, fell 0.8 percent.
Nvidia (NVDA), a crucial stock in the tech portfolio, was one chipmaker that felt the pinch. The stock was down 4.4 percent. The fund’s largest holding, Apple (AAPL), fell 0.45 percent. Factors in the United States and abroad drove the market. The Labor Department said that weekly unemployment claims fell to 360,000, a new record low. On Capitol Hill, Federal Reserve Chairman Jerome Powell testified for a second day, insisting that the Fed isn’t close to reducing its economic stimulus. In the three months ending in June, China’s growth slowed to 7.9% from a year earlier, indicating that the pandemic’s robust strong resurgence was beginning to stabilize. The GDP result also fell short of expectations, coming in at 8.2 percent. However, the numbers were still solid; industrial production increased 8.3% year over year, topping predictions of 7.8%, which is a strong sign for global economic growth. China’s
The CSI 300 index is a rating system for companies.
The stock ended the day with a gain of 1.3 percent. A 1.1 percent decline for the dollar spoiled a largely bullish day for Asian stocks.
225 Nikkei
. When strong economic data hits the wires, value stocks frequently outperform growth ones. When compared to growth companies, value-oriented companies’ earnings are much more susceptible to economic shifts. Oil prices have continued to fall since Wednesday, owing to expectations that Saudi Arabia and the United Arab Emirates are close to reaching an agreement on output levels. Data showing a dip in gasoline demand in the United States didn’t help matters. The price of WTI crude oil fell 2.15 percent to $71.56 per barrel.
Investors are keeping a close eye on the more contagious Delta variety of Covid-19, which is spreading over the world, including in the United States. On Wednesday, the United Kingdom added the Balearic Islands to its amber list, requiring residents returning from vacations as of Monday to quarantine unless they have received a full set of vaccinations. In Europe, shares of renewable energy businesses fell, with Spain’s falling the most.
Renewable Energy by Siemens Gamesa
After warning of a fiscal 2021 loss due to third-quarter provisions, the stock dropped 14%. This had a knock-on effect.
Siemens Energy is a subsidiary of Siemens AG.
Its stock dropped 11% after the German energy company said it will miss full-year margin forecasts due to disappointing results from its Spanish affiliate.
Taiwan Semiconductor Manufacturing (Taiwan Semiconductor Manufacturing)
As a result of the pandemic, chip demand remained high in the second quarter, resulting in an 11 percent increase in net profit. Although the earnings fell short of experts’ expectations, the stock remained basically unchanged.
American International Group is a multinational corporation based in the United
The stock of AIG (ticker: AIG) climbed 3.64 percent after private equity firm Blackstone agreed to buy a 9.9 percent stake in AIG’s life and retirement business for $2.2 billion.
Blackstone
(BX) saw a 3.88 percent increase in its stock price.
Morgan Stanley is a financial services firm based in
(MS) climbed 0.18 percent as the company reported a profit of $1.85 per share, beating predictions of $1.65 per share, on revenue of $14.8 billion, which was more than the $13.9 billion expected.
Microchips and Advanced Micro Devices
(AMD) stock fell 2.38 percent after Citigroup upgraded it from Sell to Neutral.
Old Dominion Freight Line is a freight line that operates in the United States.
(ODFL) climbed 0.02 percent despite Wolfe Research downgrading the company to Peer Perform from Outperform.
NXP Semiconductors is a semiconductor company based in the Netherlands.
The stock of NXPI fell 4.49 percent after Mizuho downgraded it from Buy to Neutral. Jacob Sonenshine can be reached at jacob.sonenshine@barrons.com./n
