The fresh inflation numbers pushed investors into small-cap stocks and sent Wall Street heavyweights lower after a week of back-to-back gains for the S&P 500 and Nasdaq.
Meanwhile, the yield on the 10-year U.S. government bond, also known as the “10-year,” fell from 4.30 percent to 4.20 percent, while the yield on the two-year note fell from 4.64 percent to 4.53 percent.
The conclusion on Thursday is that the broad overall index Standard & Poor's 500 It fell 0.9 percent to 5,590, while the technology index fell. Nasdaq It ended up falling a massive 1.9 percent to 18,318. Heavy Industry Dow JonesOn the other hand, its growth did not exceed 0.1 percent.
The VIX, also known as the “fear index,” rose 1.17% to 13.0.
The market is in a spin
Russell 2000The index, which tracks 2,000 companies with “small” market capitalizations (small caps), jumped 3.4 percent on Thursday.
“We have positive CPI numbers as a result of Powell being a little bit weaker. Interest rates have come down sharply and we’re seeing a bit of a rotation,” said Russ Mayfield, investment strategist at Baird. cnbcwhich aims to move investors more from the largest technology companies to smaller, more interest-sensitive companies.
– But the problem with so much market concentration in big tech companies is that this rotational trading can make it look like the market as a whole is falling. [selv om andre sektorer faktisk stiger]he added.
Technology Downfall and “Construction Boost”
And the loser today Tesla which fell by 8.4 percent after that. Bloomberg The electric car maker is reportedly delaying the launch of its Robotaxi car by two months. Things have also gone badly for the two largest microchip makers. Nvidia And Advanced Micro DevicesWhich fell by 5.4 and 1.6 percent, respectively.
Housing and construction stocks rose sharply on Thursday as the Federal Reserve delivered promising inflation figures. U.S. heavyweights Mohawk Industries, First Source Builders a duck Dr. Horton Everyone put more than 6 percent.
The so-called FAANG stocks, in line with other Wall Street heavyweights, saw a big advance on Thursday, with respectively Facebook Meta closed down 4 percent. apple Down 1.9 percent Amazon Down 2.3 percent Netflix Down 3.8 percent and Google (Alphabet) decreased by 2.8 percent.
Japanese yen rises sharply
The Japanese yen strengthened as much as 3 percent against the dollar on Thursday — its biggest gain since 2022. The dollar now costs 158.75 yen. The strength came after the dollar index fell following a better-than-expected June inflation report. cnbc He also writes about Japanese media reports that Japanese authorities have intervened in the currency market, according to Japanese government sources.
Oil price strengthens
Following signs of falling inflation which in turn will stimulate economic growth, oil prices have risen on the hope of increasing demand for oil.
The price of a barrel of North Sea oil (burnt spot) rose by 0.53% to reach $85.61, while the price of West Texas Intermediate crude rose by 0.9% to reach $82.85 per barrel.
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”
