Streak of records ends for Nasdaq, S&P 500
The S&P 500 and Nasdaq both fell on Thursday, snapping a multiday run of records as investors shifted towards underbought equities and away from artificial intelligence names. The pivot came as the yield on US Treasury bonds fell further amid rising expectations of interest rate cuts after better US inflation data. The Dow Jones finished up 0.1 percent at 39,753. The S&P 500 dropped 0.9 percent to 5,584, while the Nasdaq fell 2.0 percent to 18,283, snapping a run of seven straight records on the tech-focused index. While two of the three indices finished in negative territory due to weakness in Nvidia, Apple and other tech equities that have led the market in 2024, analysts noted that the majority of equities moved higher. "What's being bought is the laggards," said Art Hogan of B Riley Wealth Management. "It's the start of a healthy rotation." In June, overall consumer prices declined 0.1 percent on-month for the first time since 2020, US data showed. The better-than-expected reading comes as markets increasingly wager that the Federal Reserve will soon cut interest rates. Futures markets now see around an 85 percent chance of a rate cut at the Fed's September meeting. Among individual companies, Delta fell 3.9 percent after reporting a 29 percent drop in quarterly profits to US$1.3 billion. The carrier scored record revenues for the June quarter but said it would temper plans to add capacity in the second half of 2024 due to moderating demand. American Airlines and United Airlines also fell. Tesla plunged 7.9 percent following a report that Elon Musk's electric auto giant will delay a much anticipated "robotaxi" event. The unveiling was originally planned for August 8, but Tesla has pushed the event back until October to give teams more time, Bloomberg News reported, citing people familiar with the decision. (AFP)