Stock Market Under Strain: Moderate Employment Figures Causing Concern; Wall Street Watching Closely as Amazon, Apple, Microsoft, Coinbase, Arm Holdings, ExxonMobil Take Center Stage
The Dow Jones Industrial Average is expected to open 1.0% lower on Friday, trading at 43,705 points, following a minimal gain of 0.1% in July. Meanwhile, the Nasdaq 100 is predicted to open down 1.2% at 22,949 points, marking a continuation of the downward trajectory seen in pre-market trading.
These predictions come as the major indices struggle in the face of mixed signals from some of the largest technology companies, commonly known as the "Magnificent 7." While Apple's impressive figures have buoyed the market, Amazon's disappointing results have weighed heavily, leading to a weekly decline of 1.4% for the Nasdaq 100 and a weekly loss of around 2.7% for the Dow.
The start of August sees Wall Street exhibiting a bearish trend, in contrast to the resilience displayed by Wall Street in August 2021, despite the reimposition of severe U.S. tariffs. While tariffs raised concerns over earnings forecasts and pushed the average tax on U.S. imports to decades-high levels, the market largely shrugged off tariff fears, as demonstrated by a strong week for major indices like the S&P 500 and Nasdaq.
Tech companies contributed to this upward momentum with strong quarterly results, reflected in overall rising market indices despite the tariff backdrop. However, Berkshire Hathaway's Q2 report highlighted caution about tariffs affecting business operations and reflected a broader investor wariness of prolonged trade tensions.
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In July, the Nasdaq 100 registered a rise of 2.4%, despite the challenging economic environment. As August unfolds, investors will be watching closely to see how the market responds to the current bearish trend.
Financial analysts are closely monitoring the volatile market as the Dow and Nasdaq 100 are expected to open lower on Friday, with the Dow expected to open at 43,705 points and the Nasdaq 100 predicted at 22,949 points. This decline follows mixed signals from tech giants, commonly known as the "Magnificent 7," where tech titans like Amazon have delivered disappointing results, outweighing positive trends such as Apple's impressive figures. As a result, investors are investing caution in light of trade tensions and the resulting tariffs, with August 2022 showing a bearish trend in stark contrast to the resilience displayed in the same month last year.
