LIVE MARKETS-U.S. stocks turn sharply negative after weak data
U.S. stocks turned sharply negative after weak economic data, with the Nasdaq being hit the hardest. Real estate led the S&P sector gainers, while tech was the weakest group. The U.S. 10-Year Treasury yield slid to around 3.98%. The decline in the ISM manufacturing indicates that the sector is still struggling. The S&P 500 and Dow are both down over 1%, while the Nasdaq is down nearly 2%. Defensive groups showed strength, while economically sensitive groups declined.
Main U.S. indexes red; Nasdaq hit hardest, down ~2%
Real Est leads S&P sector gainers; Tech weakest group
Dollar up; gold slips; crude off ~1%; bitcoin off >2%
U.S. 10-Year Treasury yield slides to ~3.98% Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at
U.S. STOCKS REVERSE, TURN SHARPLY NEGATIVE AFTER WEAK DATA
U.S. stock indexes have turned decidedly negative in the aftermath of some weak economic data prints.
Before the open, initial jobless claims came in at 249k vs a 236k estimate. Stocks pushed higher initially with the S&P 500 index (.SPX) hitting its intraday high at 945 ET, which coincided with the release of July ISM manufacturing PMI, which came in at 46.8 vs a consensus forecast of 48.8. At 1000 ET, June construction spending also came in below the estimate.
Matthew Martin, U.S. economist at Oxford Economics, wrote in a client note that the decline in the ISM manufacturing to its lowest point since November confirms the sector is still struggling from high interest rates and slowing demand.
He believes some of these pressures will abate if the Federal Reserve begins its rate cutting campaign in September. But even then, it will take time for lower borrowing costs and easing credit conditions to work their way through the system, he writes.
Meanwhile, concerns over the economy, in the wake of the Fed leaving rates unchanged on Wednesday, are taking their toll.
The S&P 500 (.SPX) and Dow (.DJI) are now both down more than 1% each. The Nasdaq (.IXIC) is off nearly 2%.
S&P 500 sectors are mixed, with defensive groups showing strength, and more economically sensitive groups declining.
Under the surface, chips (.SOX) , regional banks (.KRX) , and small caps (.RUT) are among those groups taking especially big hits.
The U.S. 10-Year Treasury yield (US10YT=RR) has broken below 4.0% and has hit its lowest level since early February. The yield is also on track to fall for a sixth day in a row. The yield fell six-straight days with a streak that ended in early June.
Apple (AAPL.O) and Amazon.com (AMZN.O) are due to report quarterly results after the closing bell, and markets are bracing for the July jobs report on Friday morning.
Here is a snapshot of where markets stood around 1249 ET (1649 GMT):
(Terence Gabriel)
FOR THURSDAY’S EARLIER LIVE MARKETS POSTS:
CHIPS TANK AS ARM THROWS WRENCH INTO AI RALLY - CLICK HERE
UH-OH, IT’S AUGUST, BUT THERE MAY BE A CATCH THIS YEAR - CLICK HERE
NASDAQ GAINS WITH HELP FROM FED, SOME EARNINGS - CLICK HERE
BENCHMARK TREASURY YIELD: BREAK IN THE CLOUD - CLICK HERE
ENERGY EQUIPMENT: YOUR NEXT BEST ENERGY TRANSITION PLAY? - CLICK HERE
POSITIONING ONLY “A BIT” CLEANER AFTER JULY WOBBLE - CLICK HERE
STOXX FALLS AS BANKS, AUTOS DRAG - CLICK HERE
MARKETS BET ON BENEFICENT BOE - CLICK HERE
MARKETS BRACE FOR BOE CUT, BARRAGE OF EARNINGS - CLICK HERE
midday08012024
(Terence Gabriel is a Reuters market analyst. The views expressed are his own)