LIVE Stocks bounce back from 3-day rout as S&P 500, Nasdaq rally XETRA - Delayed Quote • USD IN.IS.MSCI WOR.S. DL D.DL (0K7Q.DE) Follow 7.62 0.00 (0.00%) At close: February 3 at 5:45 PM GMT+1 Related News What is the carry trade and why did it cause market chaos? The yen carry trade unwinding was a big factor in the Monday sell-off. It started after the Bank of Japan raised its interest rates. Market Domination Co-host Julie Hyman breaks down what a carry trade is and its role in the global market meltdown seen in Monday's trading session. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Melanie Riehl The market is 'overreacting' to weak labor report: Economist The major indexes (^DJI,^GSPC, ^IXIC) are bouncing back after a three-day sell-off triggered by a weaker-than-expected jobs report in July. As investors continue to be wary of a recession, Apollo Global Management chief economist Torsten Slok joins Catalysts to discuss the market reaction and break down why tech, in particular, is seeing a massive sell-off. Slok notes that despite the weak labor report, there's not much other evidence that points to a recession: "Daily data for how many people fly on airplanes as of last Friday is still strong. Daily data from OpenTable for how many people go to restaurants is still strong. Weekly data for retail sales from Redbook is also still strong. Hotel occupancy rates, the weekly data also still strong." He reiterates Federal Reserve Chair Jerome Powell's emphasis on the totality of the data, and adds, "the market is overreacting to just one data point." He believes that the tech sell-off is being driven by two factors. The first is because "valuations got so stretched and earnings expectations were simply inconsistent with where valuations were." Therefore, when some of the Magnificent Seven tech names missed expectations, investors reassessed their positions. The second boils down to the carry trade unwinding: "You've seen a reversal of a lot of trades where essentially investors were borrowing in yen. Remember, in yen, interest rates up until literally two weeks ago were zero. Now they went up to 25 basis points... dollar-yen has moved from 161 down to 144. That means that if I borrowed in yen, now I need to pay back in yen. If yen is more expensive, that means that I need to pay back more." Note: Apollo Global Management is Yahoo's parent company. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Melanie Riehl Expect volatility to fade, unless the data sours: Strategist US equities (^GSPC, ^DJI, ^IXIC) are slightly rebounding after facing a multiple day sell-off, mostly in the tech sector. Questions around the strength of the tech sector and AI plays begin to arise as it faces volatility and a potential rate cut from the Federal Reserve. UBS Investment Bank US equity derivatives strategist Max Grinacoff joins Catalysts to give insight into what's next after the sell-off that the tech sector has faced. "Typically what you've seen historically is you've seen volatility or the VIX (^VIX) rise into Fed rate cut cycles historically and retrace thereafter, unless again accompanied by recession...We do think volatility ultimately fades a little bit from here, unless the data really continues to sour", says Grinacoff. He continues with: "But we do think it's going to take a few weeks to do so, and our models are suggesting, that again, the data is going to be very pertinent over the next couple of weeks in terms of kind of continuing to see a retracement back to normal." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Nicholas Jacobino Tech market concentration is the main market issue: Portfolio manager Equity markets (^DJI, ^IXIC, ^GSPC) are recovering following a three-day plummet driven by recession fears. The tech sector bore the brunt of the downturn, with mega-cap tech companies losing about $1 trillion in value over this period. Morgan Stanley senior equity portfolio manager Aaron Dunn joins Morning Brief to share his market outlook. Dunn observes that despite the market being "in correction mode," an overall uptrend persists. He identifies the main issue for markets is the long-standing "concentration of all these indices," with tech stocks driving the majority of gains. However, Dunn warns that if these stocks become volatile and fall, "the downside will occur" throughout markets. "I think one of the things to watch, for me, is global liquidity getting a little better as you have a... central bank easing cycle coming," Dunn told Yahoo Finance. He suggests that as global central banks ease monetary policy, "that should help the economy." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith Note: The headline was updated to. accurately reflect Dunn's title. Stocks open slightly up, eager to rebound from sell-off US equities (^DJI, ^IXIC, ^GSPC) open Monday's trading session relatively flat following yesterday's wide-spread sell-off that saw the Dow Jones Industrial Average fall over 1,000 points and erase $650 billion in Magnificent Seven tech stock's market cap. Seana Smith and Brad Smith monitor index movements after the opening bell, joined by Jared Blikre in examining the S&P 500 volatility index (^VIX), Treasury yields (^TNX), and this morning's sector gains. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Luke Carberry Mogan. Wall Street watching Fed, Google ruling, Palantir: 3 Things US stocks (^DJI, ^IXIC, ^GSPC) hope to stage a comeback after Monday's massive sell-off that saw the Dow Jones Industrial Average sink by 1,033 points (2.6%) and the Nasdaq Composite fall off by 570 points (3.43%), the event fueled by last week's July jobs report and renewed speculation into whether the Federal Reserve will revise its own interest rate forecasts. A federal judge found Google's search business (GOOG, GOOGL) to be a monopoly and in violation of antitrust laws. Palantir (PLTR) shares ride higher in Tuesday's pre-market trading coming off of its second quarter earnings beat reported after yesterday's market close. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Luke Carberry Mogan. Lucid, Palantir report earnings: Market Domination Overtime On today's episode of Market Domination Overtime, Hosts Julie Hyman and Josh Lipton break down the market close and what to watch on Tuesday, August 6th. Markets tanked on Monday, closing the session lower after widespread selling activity: the Dow Jones Industrial Average (^DJI) sank by 1,033 points (2.6%), the Nasdaq Composite (^IXIC) dropped off by 576 points (3.43%), and the S&P 500 (^GSPC) fell by 160 points (3.0%). iCapital Chief Investment Strategist Anastasia Amoroso explains that the sell-off has been gaining steam, but Monday's action "feels like a tantrum." Amid a slower economy, Amoroso expects defensive trades to outperform and points to tax-exempt municipal bonds as a good opportunity. She also believes real estate is a solid play, as it is a sector best positioned to benefit from an interest rate cut. While the technology sector is being hammered by a global sell-off, Amoroso argues that in the longer-term, investors could buy some of the semiconductor stocks that benefit from AI on the dip. Lucid (LCID) shares are soaring in after-hours trading after reporting better-than-expected second quarter revenue. The EV maker also announced it has received a $1.5 billion commitment from the Public Investment Fund, Saudi Arabia's sovereign wealth fund. Similarly, shares of Palantir Technologies (PLTR) are rising after the company saw its revenues surge by 27% year-over-year in its second quarter earnings and raised its 2024 revenue guidance. Finally, Julie Hyman and Josh Lipton break down what to watch on Tuesday, August 6th, from Uber (UBER) earnings to the announcement of Kamala Harris's vice presidential pick. This post was written by Melanie Riehl Monday's market action was a 'tantrum' amid a growing sell-off Markets were under pressure in Monday's session, as the Dow Jones Industrial Average (^DJI) sank by 1,033 points, the Nasdaq Composite (^IXIC) dropped by 576 points, and the S&P 500 (^GSPC) fell by 160 points. iCapital Chief Investment Strategist Anastasia Amoroso joins Market Domination Overtime to break down the movement and how investors could navigate this volatility. Amoroso explains that the sell-off has been gaining steam, and today's action "feels like a tantrum." She notes that the movement came down to "the systematic unwind of a lot of long positioning," as hedge funds were long technology, for one. She adds, "whenever you see this downward knee-jerk reaction, the first place you look at is technicals. And so I think that's what's at play today. But I do think there's something else that's in the background, and that is, of course, I call it 'market mood' to price in a recession." She explains that markets were spooked by July's jobs report and the idea that the Federal Reserve is behind the curve when it comes to interest rate cuts, which ultimately stoked fears of a recession. Amid a slower economy, Amoroso expects defensive trades to outperform and points to tax-exempt municipal bonds as a good opportunity. She also believes real estate is a solid play, as it is a sector best positioned to benefit from an interest rate cut. While the technology sector is being hammered by a global sell-off, Amoroso argues that in the longer-term, investors could buy some of the semiconductor stocks that benefit from AI on the dip. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Melanie Riehl Stocks plunge in market sell-off, Nasdaq closes 3.4% lower Markets turned blood red on Monday, closing the session lower after widespread selling activity: the Dow Jones Industrial Average (^DJI) sank by 1,033 points (2.6%), the Nasdaq Composite (^IXIC) dropped off by 570 points (3.43%), and the S&P 500 (^GSPC) fell by 160 points (3.0%). Julie Hyman and Jared Blikre recap the day's market performance after the closing bell, highlighting movements in Treasury yields (^TYX), the volatility index (^VIX), and various sector losses. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Luke Carberry Mogan. Stock market turmoil ‘only half complete’, warns Wall Street giant The global stock market rout has a long way to go, analysis by a Wall Street bank has indicated, as European markets once again turn negative. Top Stock Movers Now: Kenvue, Uber, Palantir, and More U.S. equities rallied Tuesday after Monday's big sell-off amid worries about the health of the U.S. economy. Hedge Funds Bought the Dip in US Stocks on Monday, Goldman Says (Bloomberg) -- As volatility gripped global markets to start the week, hedge funds stepped in to buy the big dip in technology shares, according to Goldman Sachs Group Inc.’s prime brokerage data.Most Read from BloombergAfrica’s Richest City Needs $12 Billion to Fix InfrastructureNew York City’s Outdoor Dining Sheds Will Start DisappearingSinger Akon’s Multibillion-Dollar Futuristic City in Africa Gets Final NoticeThe 5 Coastal States That Face the Most Devastating Flood RiskParis Spent €1.4 Bil US Equity Indexes Rebound in Midday Trading US Equity Indexes Rebound in Midday Trading If You'd Invested $5,000 in Apple Stock 5 Years Ago, Here's How Much You'd Have Today Can Apple's shares continue to beat the market? Dow Jones Up As Google Ruling Raises Apple Fears; Cathie Wood Loads Up On AI Stock (Live Coverage) The Dow Jones was up on the stock market today. Palantir stock surged on earnings. Cathie Wood snapped up a diving stock. Nvidia gained. Tech Leads US Stocks Higher as Dip Buyers Emerge: Markets Wrap (Bloomberg) -- Stocks continued to rise as dip buyers jumped back into the market after a roughly $6.5 trillion selloff in from global equities over the past few weeks.Most Read from BloombergAfrica’s Richest City Needs $12 Billion to Fix InfrastructureNew York City’s Outdoor Dining Sheds Will Start DisappearingSinger Akon’s Multibillion-Dollar Futuristic City in Africa Gets Final NoticeThe 5 Coastal States That Face the Most Devastating Flood RiskParis Spent €1.4 Billion to Clean Up the Seine. S&P 500 Nuclear Power Giant Hikes 2024 Profit Outlook After 800% Grid-Price Surge S&P 500 component Constellation Energy increased its full-year profit guidance Tuesday even as second-quarter earnings and revenue came in slightly under analyst expectations. Constellation Energy reported Tuesday that Q2 adjusted earnings grew more than 2% to $1.68 per share while revenue increased less than 1% to $5.47 billion. Constellation Energy's previous view was $7.23-$8.03 per share. S&P 500, Nasdaq 100 Rebound Following Three-Day Tech-Led Selloff (Bloomberg) -- Buyers waded into the stock market on Tuesday following a three-day rout fueled by fears of a US economic slowdown and extreme tech-sector valuations. Most Read from BloombergAfrica’s Richest City Needs $12 Billion to Fix InfrastructureNew York City’s Outdoor Dining Sheds Will Start DisappearingSinger Akon’s Multibillion-Dollar Futuristic City in Africa Gets Final NoticeThe 5 Coastal States That Face the Most Devastating Flood RiskParis Spent €1.4 Billion to Clean Up the Seine. Ha This Bond Market Indicator Says the Stock Market Will Be Fine Credit spreads between Treasuries and corporate bonds have widened but still remain at historical levels. Market Volatility Jumps: ETFs to Tap Volatility roared back amid market rotation and growing anxiety about a slowing U.S. economy. Investors could benefit from the rising market volatility with ETF/ETN options available in the market.
