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Big Tech declines weighed on Wall Street on Tuesday (July 30) ahead of key interest rate decisions. The S&P 500 dropped 0.5 per cent, while the Dow Jones gained 0.5 per cent and the Nasdaq fell 1.3 per cent. PayPal and JetBlue saw significant gains, but Microsoft, Nvidia, Merck, and Procter & Gamble faced declines read more
 "Big tech slump drags Wall Street, overshadows broad market gains ahead of interest rate decision")
In the US stock market, the S&P 500 dropped, while Nasdaq and Dow Jones rose on Tuesday (July 30). Reuters
Major stock markets diverged on Tuesday (July 30) ahead of crucial interest rate decisions and earnings reports from prominent companies. Big Tech stock declines weighed on Wall Street, overshadowing broader market gains in the US.
The S&P 500 dropped 0.5 per cent, losing 27.10 points to close at 5,436.44, even as two-thirds of the stocks within the index rose. Meanwhile, the Dow Jones Industrial Average climbed 203 points, or 0.5 per cent, to 40,743.33, and the Nasdaq composite fell 1.3 per cent, or 222.78 points, to 17,147.42.
Market movers
JetBlue Airways jumped 12.3 per cent after reporting a profit for the spring quarter, defying analysts’ predictions of a loss. The airline also laid out plans to improve on-time performance and attract more customers.
Among the top gainers, PayPal surged 8.6 per cent after surpassing analysts’ profit expectations for the spring quarter and revising its full-year profit forecast upwards.
However, a 0.9 per cent decline in Microsoft shares weighed on the S&P 500 as investors awaited its profit report, which was released post-trading.
Other major tech stocks, collectively known as the “Magnificent Seven,” also saw declines, including a 7 per cent drop in Nvidia shares.
Merck shares tumbled 9.8 per cent despite reporting stronger-than-expected quarterly results. The company’s annual profit forecast fell short of expectations, partly due to costs associated with its Eyebiotech acquisition.
Procter & Gamble fell 4.8 per cent after exceeding profit forecasts but missing revenue targets for the latest quarter. The company cited challenges from shifting foreign exchange rates impacting its international sales, which it expects to continue into the next fiscal year.
Focus on interest rates
The Federal Reserve is widely expected to maintain US interest rates at current levels when it concludes its policy meeting on Wednesday.
Investors will closely examine the central bank’s post-meeting statement for signs that it will cut borrowing costs in September, as inflation shows signs of easing.
“Investors don’t expect a rate change when the meeting concludes tomorrow, but after June’s inflation metrics were softer than expected and with a job market that’s weakening, they have high expectations for a cut during September’s meeting” said Joe Mazzola, strategist at Charles Schwab.
This divergence in market performance comes as investors prepare for significant corporate earnings reports and await guidance from the Federal Reserve on future interest rate policies.
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English (US) ·