Market Update: Stocks Close Lower Thursday
The stock market experienced a downturn on Thursday, with U.S. stocks closing lower at the end of the trading session. The Dow Jones Industrial Average saw a decline of 605.78 points, marking its worst day of 2024. The S&P 500 dropped by 0.74%, while the Nasdaq Composite fell by 0.39%.
Retail trader sentiment also took a hit in the second quarter, as reported by the Charles Schwab Trader Sentiment Survey. Bullish sentiment among traders fell to 46% from 53% in the previous quarter, with concerns about inflation on the rise.
Market pricing now indicates expectations for just one rate cut by the Federal Reserve this year, with the first cut not expected until at least September or November. This is a significant shift from earlier in the year when traders were anticipating multiple rate cuts starting in March.
All 30 members of the Dow Jones are trading down, with Boeing and Intel leading the losses. The equal-weighted S&P 500 ETF is on track for its worst day in nearly a month, reflecting the broader market struggles.
Geopolitical concerns are expected to weigh more heavily on the markets in the coming months, as investors shift their focus away from first-quarter earnings.
In other news, Nvidia saw a spike in its stock price after posting strong quarterly results, while Boeing shares dropped after the CFO’s comments about negative free cash flow. Live Nation Entertainment also faced a 7% drop after a lawsuit was filed by the U.S. Department of Justice.
Overall, the market breadth was poor, with roughly four-fifths of the S&P 500 in negative territory. The semiconductor sector, despite Nvidia’s rally, also showed signs of struggle.
In the midst of market fluctuations, new opportunities are emerging, such as the potential $25 billion market for targeted radiopharmaceuticals in cancer treatment. JPMorgan CEO Jamie Dimon also warned of a possible “hard landing” for the U.S. economy.
Despite some positive economic indicators, such as higher-than-expected services and manufacturing PMIs, the stock market remains volatile. Investors will need to navigate these uncertainties in the coming months.