On Friday, stock futures experienced a decline following three consecutive days of drops in the major market averages.
Futures tied to the Dow Jones Industrial Average exhibited a 0.1% decrease, translating to a 30-point drop. Similarly, S&P 500 futures showed a marginal 0.1% increase, while Nasdaq-100 futures registered a 0.3% decrease.
Currently, the Dow is set for a tough week, dropping 2.29% until Thursday. Similarly, the S&P 500 faces a third week of losses, a pattern last seen in February. The Nasdaq Composite is also gearing up for a third week of losses, not seen since December. Meanwhile, the Dow Transports and Russell 2000 are heading for their toughest weeks since March.
During the ongoing earnings season, Applied Materials saw an almost 3% increase in after-hours trading as the semiconductor equipment manufacturer surpassed analysts’ expectations both in terms of revenue and earnings. Similarly, Ross Stores experienced a rise of around 5% after surpassing second-quarter predictions.
Following suit, Palo Alto Networks is scheduled to release its earnings report after the market closes on Friday.
Thursday’s Market Movements
Thursday marked a notable event as the Dow closed below its 50-day moving average for the first time since June 1, signaling a bearish trend for investors. The Dow, comprising 30 major stocks, experienced a significant drop of 290.91 points, equivalent to a 0.84% decrease. Simultaneously, the S&P 500 witnessed a decline of 0.77%, while the Nasdaq Composite slid by 1.17%.
On Thursday, the yield of the 10-year U.S. Treasury reached its highest point since October 2022. This increase was prompted by the release of the July meeting minutes from the Federal Reserve, which indicated the possibility of upcoming interest rate hikes due to the ongoing concern among central bank policymakers regarding inflation.
Guy Adami from Private Advisor Group shared his perspective on the situation “Fast Money,” stating, “In my view, the rise in rates isn’t occurring due to favorable factors. We’re currently witnessing a convergence of various global events. We’re encountering levels that have been absent for a considerable duration.”
He further elaborated, “If the trajectory of yield movement persists as it currently is, it’s likely to have significant implications for worldwide equity markets.”
Summary
Stock futures declined after consecutive market drops. Dow and S&P 500 futures fluctuated, signaling a challenging week for Dow, S&P 500, and Nasdaq. Applied Materials and Ross Stores reported positive earnings amid a bearish Dow. Notably, Dow dipped below the 50-day average. Meanwhile, 10-year Treasury yield surged due to Fed concerns on inflation and global factors, potentially impacting equity markets worldwide.
