Nasdaq Plunges, VIX Spikes As US Credit Downgrade Sparks Rush To Cash: What's Driving Markets Wednesday?
Portfolio Pulse from Shanthi Rexaline
US stock futures fell on Wednesday due to a U.S. sovereign rating downgrade by Fitch, intensifying concerns about market overbought conditions. The downgrade was attributed to fiscal indiscipline and governance challenges. Amidst this, the market is absorbing a stream of earnings reports. Traders are also expressing unease over rising bond yields and await insights from a private payrolls survey. In premarket trading, the SPDR S&P 500 ETF Trust (NYSE:SPY) fell 0.43% and the Invesco QQQ ETF (NASDAQ:QQQ) slumped 0.70%. Several companies including Advanced Micro Devices, Inc. (NASDAQ:AMD), Starbucks Corp. (NASDAQ:SBUX), and Tesla, Inc. (NASDAQ:TSLA) saw movements in their stock prices following their quarterly results announcements.
August 04, 2023 | 11:02 am
News sentiment analysis
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NEGATIVE IMPACT
The Invesco QQQ ETF slumped 0.70% in premarket trading due to the US sovereign rating downgrade.
The downgrade of the US sovereign rating by Fitch has led to a negative sentiment in the market, causing a fall in the price of the QQQ ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Starbucks Corp. retreated over 1.75% following its quarterly results announcement.
Starbucks Corp.'s stock price fell over 1.75% following its quarterly results announcement, indicating a negative reaction from traders.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust fell 0.43% in premarket trading due to the US sovereign rating downgrade.
The downgrade of the US sovereign rating by Fitch has led to a negative sentiment in the market, causing a fall in the price of the SPY ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Tesla, Inc. fell about 2.50% in premarket trading.
Tesla, Inc.'s stock price fell about 2.50% in premarket trading, indicating a negative sentiment among traders.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
Advanced Micro Devices, Inc. rose nearly 2% in premarket trading despite the broader market weakness as traders reacted to its quarterly report.
Despite the broader market weakness due to the US sovereign rating downgrade, AMD's stock price rose as traders reacted positively to its quarterly report.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100