Tech stocks tried to make a comeback on Thursday from the Nasdaq’s worst day since 2022 as TSMC’s (TSM) upbeat results helped calm worries about the artificial intelligence trade ahead of Netflix (NFLX) earnings.
The tech-heavy Nasdaq Composite (^IXIC) erased earlier gains to fall 0.4%, while the S&P 500 (^GSPC) also fell below the flatline. The Dow Jones Industrial Average (^DJI) rose to a new intraday high following an all-time closing record for the blue-chip index.
The rally on Wall Street has hit increasing turbulence this week as political, geopolitical, and trade risks unsettle a market finally confident that the Fed will cut interest rates this year.
A sign the labor market is cooling further bolstered those rate-cut hopes on Thursday. The number of continuing applications for unemployment benefits once again hit its highest level since November 2021, signaling unemployed workers are struggling to find new jobs.
The Nasdaq sank over 2.7% on Wednesday, partly thanks to a potential escalation in US curbs on exports to China. Chip stocks Nvidia (NVDA), TSMC, and ASML (ASML) all got hammered amid a rotation from tech leaders into less prominent parts of the market.
TSMC’s strong quarterly earnings Thursday helped lift the mood. The Taiwanese chip giant beat on profit with a 36% jump, and it raised its 2024 sales outlook to signal confidence in the AI boom. Shares in the supplier to Nvidia and Apple (AAPL) erased earlier gains to fall 2%.
Netflix is the highlight on Thursday’s earnings docket, due after the market close. Expectations are high for the streamer, though some on Wall Street note the stock is already flirting with record levels.
Elsewhere, investors are keeping a watchful eye on the US presidential race, given Republican nominee Donald Trump’s potential to move markets. President Joe Biden has come down with COVID-19 at a key point in his campaign, and key Democratic leaders have revived talk of an exit.
Thu, July 18, 2024 at 10:48 AM EDT
Nasdaq, S&P 500 slips into red
Tech stocks flipped into red territory on Thursday after attempting a comeback from heavy losses in the prior session.
The tech-heavy Nasdaq Composite (^IXIC) erased earlier gains to fall 0.5% while the S&P 500 (^GSPC) also fell below the flatline. The Dow Jones Industrial Average (^DJI) rose to touch new highs, after closing at a new record in the prior session.
Tech tried to rebound after chip manufacturer TSMC (TSM) posted better-than-expected quarterly results. Shares of the Taiwanese-based company rose as much as 3% before falling into negative territory.
Thu, July 18, 2024 at 10:20 AM EDT
Dow flips into green territory
The Dow Jones Industrial Average (^DJI) flipped into green territory shortly after the market open on Thursday to rise 0.3%, touching another all-time intraday high.
The blue-chip index closed above the 41,000 level for the first time ever in the prior session.
The markets have broadened out recently as investors have rotated out of Big Tech names into small caps and sectors like Industrials, Financials, and Energy.
Thu, July 18, 2024 at 9:30 AM EDT
Nasdaq, S&P 500 rebound as TSMC calms chip turbulence fears
Tech took back the lead on Thursday following heavy losses in the prior session as chip manufacturer TSMC (TSM) posted better-than-expected quarterly results.
The tech-heavy Nasdaq Composite (^IXIC) rose 0.8%, while the S&P 500 (^GSPC) edged up 0.3%. The Dow Jones Industrial Average (^DJI) slid slightly, coming off an all-time closing high for the blue-chip index.
TSMC stock rose 3% after falling more than 7% in the prior session amid the emergence of geopolitical headwinds. Chip stocks Nvidia (NVDA) and ASML (ASML) also rebounded slightly on Thursday after getting hammered on Wednesday.
Concerns over even tighter restrictions on exports of semiconductor technology to China sent sector stocks spiraling down on Wednesday, alongside comments by Republican presidential nominee Donald Trump over Taiwan, a major manufacturing hub for high-end chips.
Thu, July 18, 2024 at 8:50 AM EDT
Jobless claims come in higher than expected
The number of continuing applications for unemployment benefits once again hit its highest level since November 2021, furthering signs the labor market is cooling as unemployed workers struggle to find new jobs.
New data from the Department of Labor showed nearly 1.87 million claims were filed in the week ending July 6, up from 1.85 million the week prior. Meanwhile, 243,000 initial jobless claims were filed in the week ending July 13, up from 222,000 the week prior and above the 229,000 economists had expected.
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