Market Review 30th July 2024
Simplify the craziness
DAILY REVIEW
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2 min read
Daily Market Summary
Today, the stock markets closed mixed, with large-cap stocks trailing behind small- and mid-cap stocks. The TSX and major U.S. equity markets exhibited a variety of movements, driven by different sectors and investor sentiments.
Key Market Movements:
Energy, Financial, and Real Estate Stocks: Led gains, continuing the trend of expanding market leadership.
Technology Stocks: Dropped 2.2% ahead of key earnings announcements, driving the Nasdaq lower.
Bond Yields: The 10-year Government of Canada yield near 3.24%, and the 10-year U.S. Treasury yield at about 4.14%.
In the global markets, Asian stocks mostly declined while European stocks gained, as investors awaited central-bank decisions in Japan and the U.K. The U.S. dollar remained stable against major currencies. In commodities, WTI oil fell due to demand concerns from China, while gold traded higher.
Focus on the Fed:
The Federal Reserve's Open Markets Committee (FOMC) meeting for July started today, with the interest rate decision to be announced on Wednesday, followed by a press conference with Fed Chair Jerome Powell. Market expectations are for the Fed to keep the fed funds rate steady at 5.25% - 5.5%. However, signals for potential interest rate cuts later this year are anticipated due to moderating inflation and a cooling labor market.
U.S. Jobs Report on Friday:
The nonfarm jobs report for June is expected to show an increase of 175,000 jobs, down from 206,000 in May. The unemployment rate is anticipated to remain at 4.1%, with average hourly earnings predicted to decrease to 3.7% year-over-year from 3.9%. This cooling labor market supports the narrative of a "soft landing" for the U.S. economy.
Market Highlights and Movers
U.S. stocks fell as investors braced for significant tech earnings and the Fed's interest-rate decision. The S&P 500 dropped 0.5%, and the Nasdaq Composite fell roughly 1.3%, while the Dow Jones Industrial Average rose 0.5%.
Big Movers:
Nvidia NVDA -7.04% $103.73
Microsoft MSFT -6.11% $422.92
AMD AMD -0.94% $138.44
PayPal PYPL +8.6% $64.00
JetBlue Airways JBLU +12.3% $6.66
Merck MRK -9.80% $115.25
Procter & Gamble PG -4.80% $161.70
Global Markets:
Asia: Mostly down
Europe: Up, with economic growth slightly stronger than expected in the eurozone
Japan: Nikkei 225 up 0.1% ahead of the Bank of Japan meeting
London: FTSE 100 down 0.2% ahead of the Bank of England decision
Commodities:
WTI Oil: Down on concerns over demand from China
Gold: Traded higher
Extensive Reference Table:
Market Performance Summary MarketWatch
Fed Meeting Insights Federal Reserve
U.S. Jobs Report Expectations Bureau of Labor Statistics
Earnings and Stock Movements Yahoo Finance
Global Market Updates Bloomberg
Commodities Report Oil Price
