Source: Sharecast
The Dow finished flat, having paused close to its record high for the past four trading sessions. Meanwhile the S&P 500 fell 0.6% and the Nasdaq sank 1.5%, with the latter dropping to its lowest level in two weeks. Since hitting a yearly low in April, the tech-heavy Nasdaq has surged more than 40%.
“What the US Federal Reserve might do next on interest rates remains at the top of the agenda over on Wall Street as investors wait for an update from its chair Jerome Powell," said Danni Hewson, head of financial analysis at AJ Bell.
Hewson pointed out that the CME FedWatch tool is pointing to an 83% chance of an interest-rate cut at the Fed's next policy meeting in September, given recent mixed inflation and labour market data.
“There are certainly conflicting signs when it comes to the US economy. Consumers have broadly kept spending, though they are being slightly more cautious when it comes to big ticket items. Inflation has blazed higher as tariffs have been introduced, though the latest producer price figures are a cause of nervousness. And whilst there has been some weakness in terms of job creation, there’s still doubt that will be enough to give rate setters the cover they feel is needed to deliver a cut next month."
Investors will be looking ahead to Wednesday's release of the minutes of the latest Federal Open Market Committee meeting for clues on what the central bank may do next.
On the macro front, US building permits fell by 2.8% to a seasonally adjusted annualised rate of 1.35m in July, according to the Census Bureau, the lowest reading since June 2020 and below market expectations of 1.39m. Permits for buildings with five or more units dropped by 9.9% to an annualised rate of 430,000, while single-family permits increased by 0.5% to 870,000.
Housing starts, on the other hand, rose by 5.2% month-on-month to a seasonally adjusted annualised rate of 1.42m in July, the biggest increase in five months and in contrast with market expectations of a drop to 1.29m, extending the upwardly revised 5.9% jump from June. Starts were carried by housing with five or more units for a second month, up 11.6% to 470,000, faster than one-unit starts, up 2.8% to 939,000.
Market movers
Tech stocks were among the day's worst performers with big names like Palantir, Broadcom, Advanced Micro Devices and Nvidia all finishing with heavy losses.
Bucking the trend was Intel, which rose strongly after securing a $2bn investment from Japan’s SoftBank, offering the chipmaker a financial boost as it strives to regain competitiveness and amid reports that the Trump administration is weighing its own stake in the company.
Peabody Energy declined after the mining group pulled out of a $3.8bn move to take over Anglo American's steelmaking coal business in Australia, blaming a contested 'material adverse change' to the deal first announced last November. Anglo said it was starting an "arbitration to seek damages for wrongful termination".
Shares in Home Depot jumped after the American DIY retail giant maintained full-year targets despite missing the mark with its second-quarter earnings.
Broadcasting group Tegna gained after larger rival Nexstar announced a deal to take over the company for $6.2bn, bolstering its position in the local media market.
"The new company will be better able to serve communities by ensuring the long-term vitality of local news and programming from trusted local sources and preserving the diversity of local voice and opinion," Nexstar said in a statement.
Dow Jones - Risers
Intel Corp. (INTC) $25.31 7.53%
Home Depot Inc. (HD) $407.20 3.17%
Procter & Gamble Co. (PG) $158.40 1.72%
Travelers Company Inc. (TRV) $268.87 1.49%
Coca-Cola Co. (KO) $70.13 1.45%
Dow Chemical Co. (DOW) $23.53 1.25%
Verizon Communications Inc. (VZ) $44.94 1.24%
Walgreens Boots Alliance, Inc. (WBA) $12.08 1.13%
3M Co. (MMM) $154.34 0.97%
Johnson & Johnson (JNJ) $177.80 0.88%
Dow Jones - Fallers
Boeing Co. (BA) $225.00 -3.19%
Microsoft Corp. (MSFT) $509.77 -2.18%
Chevron Corp. (CVX) $152.00 -2.14%
Unitedhealth Group Inc. (UNH) $304.24 -1.38%
Goldman Sachs Group Inc. (GS) $721.38 -1.31%
Nike Inc. (NKE) $76.88 -0.71%
Apple Inc. (AAPL) $230.56 -0.47%
Amgen Inc. (AMGN) $295.55 -0.42%
American Express Co. (AXP) $306.10 -0.31%
JP Morgan Chase & Co. (JPM) $290.66 -0.30%
S&P 500 - Risers
Intel Corp. (INTC) $25.31 7.53%
ProLogis (PLD) $110.76 5.05%
Celanese Corp. (CE) $45.24 4.94%
Teleflex Inc. (TFX) $124.30 3.70%
Wynn Resorts Ltd. (WYNN) $112.83 3.35%
Best Buy Co. Inc. (BBY) $74.10 3.20%
Home Depot Inc. (HD) $407.20 3.17%
Federal Realty Inv Trust (FRT) $96.70 3.16%
J.B. Hunt Transport Services Inc. (JBHT) $147.23 3.11%
Baxter International Inc. (BAX) $24.33 3.05%
S&P 500 - Fallers
Advanced Micro Devices Inc. (AMD) $166.55 -5.84%
Oracle Corp. (ORCL) $234.62 -5.80%
Arista Networks Inc. (ANET) $132.78 -3.81%
Nvidia Corp. (NVDA) $175.64 -3.61%
Broadcom Inc. (AVGO) $294.91 -3.26%
Boeing Co. (BA) $225.00 -3.19%
Medtronic Plc (MDT) $89.90 -3.14%
Albemarle Corp. (ALB) $80.55 -3.06%
Mattel Inc. (MAT) $17.66 -2.91%
Take-Two Interactive Software Inc. (TTWO) $228.32 -2.58%
Nasdaq 100 - Risers
Intel Corp. (INTC) $25.31 7.53%
Wynn Resorts Ltd. (WYNN) $112.83 3.35%
J.B. Hunt Transport Services Inc. (JBHT) $147.23 3.11%
Fastenal Co. (FAST) $49.90 2.75%
Booking Holdings Inc. (BKNG) $5,584.08 1.95%
Seagate Technology Plc (STX) $157.93 1.90%
Adobe Systems Inc. (ADBE) $361.03 1.85%
Trip.com Group Limited (TCOM) $64.86 1.81%
Comcast Corp. (CMCSA) $33.90 1.69%
Illumina Inc. (ILMN) $101.60 1.66%
Nasdaq 100 - Fallers
Nvidia Corp. (NVDA) $175.64 -3.61%
Broadcom Inc. (AVGO) $294.91 -3.26%
Mercadolibre Inc. (MELI) $2,342.94 -2.78%
JD.com, Inc. (JD) $31.24 -2.74%
Take-Two Interactive Software Inc. (TTWO) $228.32 -2.58%
Netflix Inc. (NFLX) $1,214.15 -2.42%
Idexx Laboratories Inc. (IDXX) $636.48 -2.39%
Microsoft Corp. (MSFT) $509.77 -2.18%
NetEase Inc. Ads (NTES) $128.32 -2.08%
Liberty Global plc Series C (LBTYK) $11.38 -2.07%