Market Turmoil: July Jobs Report, Geopolitical Risks Spark Stock Sell-Off As Traders Flee To Treasuries, Yen, Gold
Portfolio Pulse from Piero Cingari
Global markets experienced a major downturn due to a weaker-than-expected U.S. jobs report and heightened geopolitical risks. The U.S. economy added fewer jobs than anticipated in July, and the unemployment rate rose, leading to increased market expectations for a significant rate cut by the Federal Reserve in September. Investors are moving to safer assets, causing declines in major equity indices and gains in Treasuries, gold, and the Japanese yen.
August 02, 2024 | 1:30 pm
News sentiment analysis
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NEGATIVE IMPACT
iShares Russell 2000 ETF (IWM) is down 3.3%, extending losses from the previous day as small-cap stocks face significant pressure.
Small-cap stocks are facing significant pressure amid market turmoil, leading to further declines in IWM.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
SPDR S&P Regional Banking ETF (KRE) is down 3.6%, extending drops from the previous day as regional banks face increased pressure.
Regional banks are facing increased pressure amid market turmoil, leading to further declines in KRE.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
VanEck Semiconductor ETF (SMH) is down 4.6%, continuing its decline from the previous day as semiconductor stocks face significant pressure.
Semiconductor stocks are facing significant pressure amid market turmoil, leading to further declines in SMH.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
United States Oil Fund (USO) is down 2.8% as crude oil prices fall amid market turmoil and geopolitical risks.
Market turmoil and geopolitical risks are negatively impacting crude oil prices, leading to a decline in USO.
CONFIDENCE 85
IMPORTANCE 65
RELEVANCE 75
NEGATIVE IMPACT
Invesco DB USD Index Bullish Fund ETF (UUP) is down 0.8% as investors flee to safer assets amid market turmoil.
The downturn in global markets and weaker U.S. jobs data have led investors to move away from riskier assets, negatively impacting UUP.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Technology Select Sector SPDR Fund (XLK) is down 2.6% as tech stocks face significant declines amid market turmoil.
Tech stocks are particularly sensitive to market sentiment, and the current turmoil is leading to significant declines in XLK.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Invesco CurrencyShares Japanese Yen Trust (FXY) is up 1.8% as investors move to safer currencies amid market turmoil.
The Japanese yen is considered a safe-haven currency, and the current market conditions are driving investors to FXY.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
SPDR Gold Trust (GLD) is up 1%, nearing record highs as investors seek refuge in gold amid market uncertainty.
Gold is traditionally seen as a safe-haven asset, and the current market turmoil is driving investors to GLD.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
iShares 20+ Year Treasury Bond ETF (TLT) is up 1.8%, potentially on track for its strongest session year to date as investors seek safer assets.
Investors are moving to safer assets like long-term Treasuries amid market turmoil, benefiting TLT.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Utilities Select Sector SPDR Fund (XLU) is up 0.8%, on track to hit the highest since September 2022 as investors seek safer assets.
Utilities are considered a safer investment, and the current market turmoil is driving investors to XLU.
CONFIDENCE 85
IMPORTANCE 65
RELEVANCE 75