Wall Street mixed as investors weigh GDP data after tech mauling
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
US economic growth regains steam in Q2; inflation slows
Ford slumps as higher costs, EV unit dent profit growth
IBM gets lift from software, AI demand as consulting slips
American Airlines recovers ground
Indexes: Dow up 0.28%, S&P down 0.08%, Nasdaq down 0.44%
Updated at 9:46 a.m. ET/ 1346 GMT
By Ankika Biswas and Lisa Pauline Mattackal
July 25 (Reuters) - Wall Street's main indexes were mixed on Thursday as investors assessed stronger-than-expected GDP data and remained cautious after suffering a tech mauling in the previous session.
Data showed the U.S. economy expanded 2.8% in the second quarter versus estimates of 2%, but inflation subsided, leaving intact expectations of a September rate cut.
"The growth rate was higher than what we were looking for, but the good news is that the economy expanded as consumers spent more as inflation dropped in the second quarter," said Peter Cardillo, chief market economist at Spartan Capital Securities.
"This is a good sign in terms of the economy."
Megacap stocks were mixed, after lackluster earnings from Alphabet GOOGL.O and Tesla TSLA.O pummeled the so-called "Magnificent Seven" group of tech stocks in the previous session. The Nasdaq .IXIC and the S&P 500 .SPX saw their worst day since 2022 in the selloff.
On Thursday, Nvidia NVDA.O, Alphabet GOOGL.O and Microsoft MSFT.O slipped between 0.4% and 0.9%, while Tesla rebounded2.6% after a 12% slump a day earlier.
Semiconductor stocks also broadly fell, led by a 13% tumble in Teradyne TER.O after the chip-testing equipment maker forecast lower-than-expected third-quarter revenue. The semiconductor index .SOX lost1.6%.
While the group of heavyweightstocks has poweredthe stock market to all-time highs this year,Wednesday's selloff added weight to fears thatthese stocks might be over-stretched and in for more turbulence.
"There is so much pull ahead in terms of share prices, earnings forecasts with AI that we are seeing some fatigue setting in," said Jake Dollarhide, chief executive officer at Longbow Asset Management.
The small-cap Russell2000 .RUT outperformed, rising0.7% after a2% slump in the prior session, as investors now see more value in shifting to lagging sectors.
Wall Street's "fear gauge" .VIX eased slightly, but hovered around its highest since April 19.
Investors are awaiting the personal consumption expenditures (PCE) price data, due on Friday, to confirm bets of an early start to the Federal Reserve's rate cuts after the recent trend of easing inflation and some weakness in the labor market.
Bets of a 25-basis-point cut in September ticked up to nearly 88% from around 78% prior to Thursday's data, as per CME's FedWatch Tool.
Market participants are also pricing in at least two rate cuts by December this year, according to LSEG data.
At 9:46 a.m. ET, the Dow Jones Industrial Average .DJI was up 111.84 points, or 0.28%, at 39,965.71, the S&P 500 .SPX was down 4.15 points, or 0.08%, at 5,422.98, and the Nasdaq Composite .IXIC was down 76.93 points, or 0.44%, at 17,265.48.
Among earnings-driven moves, FordF.N slumped17.2% after the automaker's second-quarter adjusted profit missed estimates by a wide margin, while American Airlines AAL.O rose4.5%, reversing premarket losses after cutting itsannual profit forecast.
Edwards Lifesciences EW.N tumbled 23.8%, the biggest decliner on the S&P 500,after missing second-quarter revenue estimates.
Advancing issues outnumbered decliners by a 1.84-to-1 ratio on the NYSE and by a 1.52-to-1 ratio on the Nasdaq.
The S&P index recorded 25 new 52-week highs and 8 new lows, while the Nasdaq recorded 45 new highs and 37 new lows.
S&P500 breaks calm streak with 2%+ drop https://tmsnrt.rs/3A8anwg
Reporting by Ankika Biswas, Lisa Pauline Mattackal and Medha Singh in Bengaluru; Editing by Savio D'Souza and Saumyadeb Chakrabarty
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
