The S&P 500 Index is down 0.15% today, alongside slight declines in the Dow Jones and Nasdaq 100, as the market retreats from recent record highs. The downturn is largely driven by weakness in chipmakers, with ASML and Marvell Technology leading the losses. Despite this, optimism surrounding a potential extension of the US-Iran ceasefire is providing some support to stock prices.
Economic indicators present a mixed picture: weekly jobless claims fell more than expected, signaling a stronger labor market, while manufacturing production unexpectedly declined. The Philadelphia Fed business outlook survey, however, rose to a 15-month high, suggesting some resilience in the economy. Market participants are currently pricing in a low probability of a rate hike at the upcoming FOMC meeting, reflecting cautious sentiment amid global uncertainties.
For investors, the ongoing earnings season is pivotal, with S&P 500 earnings projected to rise 12% year-over-year. However, excluding the tech sector, growth expectations are muted at just 3%, the weakest in two years, highlighting potential sector-specific vulnerabilities.
Source: nasdaq.com