Dow Jones closed down 533.06 points after investors sold stocks broadly: InfoQuest

The Dow Jones Industrial Average closed lower on Thursday (July 18), while the S&P 500 and Nasdaq closed in negative territory for the second day in a row. This is as investors sold stocks in a wide range. Amid concerns about the unstable political situation in the United States.

• The Dow Jones Industrial Average closed at 40,665.02, down 533.06 points, or -1.29%.
• The S&P 500 closed at 5,544.59, down 43.68 points, or -0.78%.
• The Nasdaq closed down 125.70 points, or -0.70%, at 17,871.22.

“In the last few days, investors have been shifting away from large-cap stocks, including big tech stocks, and moving into mid-cap and low-cap stocks,” said Tim Ghriskey, portfolio strategist at Ingalls & Snyder in New York. “But recently, investors have been selling in a big circle. Because I want to hold cash. At a time when the political situation in the United States is still uncertain.”

“Investors sold off broadly after absorbing some good news, including expectations that the Federal Reserve will cut interest rates in September and that the U.S. is likely to escape a recession,” said Gene Goldman, an analyst at Cetera Investment Management in New York. Investors are now worried about whether Republican presidential candidate Donald Trump will make another dovish comment after threatening to raise tariffs on Chinese imports if he wins the White House again.

Ten of the 11 stocks in the S&P 500 closed in negative territory, led by the health care sector, which fell 2.3%, followed by the luxury goods sector, which fell 1.28%, and the energy sector, which rebounded inversely, which rose 0.33%.

The Nasdaq continues to decline. This comes after it fell 2.8% on Wednesday (July 17), its biggest one-day drop since December 2022, pressured by selling pressure in technology and semiconductor groups. After President Joe Biden’s administration reportedly considered tougher measures on technology companies. If these companies continue to allow China access to American technology,

The CBOE Volatility Index (VIX), a measure of investor anxiety in the U.S. stock market, has continued to rise. Most recently, it rose to its highest level since early May of this year.

Shares of Domino's Pizza fell 13.6% after the company reported lower-than-expected sales.

Shares of Warner Bros. Discovery rose 2.4% after reports that the company plans to separate its digital streaming and studio businesses. Leave the TV network

As for the economic data released last night. The US Department of Labor said initial claims for unemployment benefits rose by 20,000 to 243,000 last week. This is the highest level since August 12, 2023 and above analysts’ expectations of 229,000.

The Federal Reserve Bank of Philadelphia said its Mid-Atlantic manufacturing index jumped 13 points to +13.9 in July, beating analysts' expectations of +2.9.

The manufacturing sector index is positive, indicating that the manufacturing sector in the Mid-Atlantic region is expanding. This was driven by increased new orders and employment.

By InfoQuest News Agency (July 19, 2024)

Tags: Dow Jones, Dow Jones, Stock Market, New York Stock Exchange