Magnificent 7 Lose Over $300B As Volatility Index Surges, Traders Question Fed's Timing: What's Driving Markets Friday?
Portfolio Pulse from Piero Cingari
Wall Street experienced a sharp decline on Friday, driven by a cooler-than-expected July jobs report and concerns over the Federal Reserve's rate cut timing. The Magnificent Seven tech giants lost over $300 billion in market value, with Apple being the only exception due to positive earnings. The Nasdaq 100 entered a correction phase, and the CBOE Volatility Index surged over 30%. Small caps and semiconductors were hit hard, with the iShares Semiconductor ETF (SMH) down over 5%. Nvidia fell 3.4% amid a DOJ investigation. Treasuries and the Japanese yen saw gains, while gold and oil prices fell.
August 02, 2024 | 5:49 pm
News sentiment analysis
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NEGATIVE IMPACT
Amazon Inc. fell nearly 10% following its earnings report, contributing to the overall decline in tech stocks.
Amazon's significant drop post-earnings reflects investor disappointment and contributes to the broader tech sector decline.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
The iShares Russell 2000 ETF (IWM) fell 3.5%, reflecting the weakness in small caps.
The heightened sensitivity of small caps to economic fundamentals led to significant declines in the iShares Russell 2000 ETF (IWM).
CONFIDENCE 65
IMPORTANCE 55
RELEVANCE 60
NEGATIVE IMPACT
Nvidia Corp. fell an additional 3.4% amid a DOJ investigation for potential antitrust violations.
The DOJ investigation into Nvidia for potential antitrust violations has led to a further decline in its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Invesco QQQ Trust Series (QQQ) fell 2.6% as the tech-heavy Nasdaq 100 entered a correction phase.
The tech-heavy Nasdaq 100's correction phase led to declines in the Invesco QQQ Trust Series (QQQ).
CONFIDENCE 65
IMPORTANCE 55
RELEVANCE 60
NEGATIVE IMPACT
The iShares Semiconductor ETF (SMH) plummeted over 5%, marking its worst performance since March 2020.
The semiconductor sector led the selloff, significantly impacting the iShares Semiconductor ETF (SMH).
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) fell 2.2% amid broad market declines.
Broad market declines impacted the SPDR S&P 500 ETF Trust (SPY), reflecting overall negative sentiment.
CONFIDENCE 65
IMPORTANCE 55
RELEVANCE 60
NEGATIVE IMPACT
The Technology Select Sector SPDR Fund (XLK) tumbled by 3.4%, reflecting the broader tech sector decline.
The broader tech sector decline significantly impacted the Technology Select Sector SPDR Fund (XLK).
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 55
POSITIVE IMPACT
Apple Inc. was the only tech giant among the Magnificent Seven to see gains, rising 2.9% due to an upbeat earnings report.
Apple's positive earnings report provided a rare bright spot in an otherwise bleak market, leading to a short-term price increase.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
The Invesco CurrencyShares Japanese Yen Trust (FXY) gained 1.8% as the yen strengthened.
The Japanese yen's strength amid market volatility led to gains in the Invesco CurrencyShares Japanese Yen Trust (FXY).
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 65
POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) rallied 2.9%, reflecting a flight-to-quality sentiment.
Investors flocked to Treasuries as a safe haven, boosting the iShares 20+ Year Treasury Bond ETF (TLT).
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
The Consumer Staples Select Sector SPDR Fund (XLP) outperformed, up 0.1%, amid market declines.
Consumer staples outperformed other sectors, leading to a slight gain in the Consumer Staples Select Sector SPDR Fund (XLP).
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 55