STOCKS CRUSHED A Wall Street sell-off intensified amid mounting concerns over US economy Milan - Delayed Quote • EUR (S34031.MI) Follow Compare 0.0024 +0.0001 (+4.35%) At close: 7:31 PM GMT+2 Related News 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 Uber earnings, Harris VP announcement: What to Watch A wave of corporate earnings results are due out Tuesday, August 6, including ride-sharing giant Uber (UBER), Airbnb (ABNB), Super Micro Computer (SMCI), and Reddit (RDDT). Vice President Kamala Harris, the presumed Democratic nominee, is expected to make an announcement tomorrow regarding her own vice presidential running mate. 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. Palantir surging on Q2 revenue, raises 2024 profit guidance Analytics software company Palantir Technologies (PLTR) saw its revenues surge by 27% year-over-year in its second quarter earnings, reporting $678.1 million in revenue ($652.8 million expected). Its stock is soaring in after-hours trading on the company's earnings beat and its decision to raise its 2024 revenue guidance. Market Domination Overtime's Julie Hyman and Josh Lipton sift through Palantir's earnings report and the performance of its individual business segments. 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. 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. Intermeeting cut would signal 'total panic': El-Erian on Fed The heat is on for the Federal Reserve as stock market sell-offs (^DJI, ^IXIC, ^GSPC) following July's disappointing jobs data are placing further pressure on the central bank to cut interest rates before its next scheduled policy meeting in September. "We're seeing red lights on three things — fundamentals, policy, and technicals. And they are feeding onto each other," Allianz Chief Economic Advisor Mohamed El-Erian warns, plainly stating the Fed waited too long in 2024 to initiate a rate-cutting cycle. The University of Cambridge, Queens’ College president and former PIMCO CEO comes onto Market Domination to outline why an early rate cut before September's FOMC meeting could "give the completely wrong signal to the marketplace" and enforce recessionary sentiments from American consumers. "I think we are in overshot territory in several segments of the marketplace already. Certainly in fixed-income in terms of government bond yields, the sort of declines we've seen, especially at the front end of the curve, are, in my view, an overreaction," El-Erian tells Yahoo Finance. "So look at whether this overreaction [starts] getting corrected or not. The ISM services number today reminded people that the economy is not completely in recession. It's the risk of recession, not in recession..." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Luke Carberry Mogan. Google loses antitrust trial in major blow to tech giant A judge has ruled that Google violated antitrust law by abusing its dominance in online search, a major blow for the tech giant and a huge win for Justice Department. How the market sell-off may impact retirement, rate cuts: Wealth! On today's episode of Wealth!, Host Brad Smith breaks down some of the biggest stories impacting your personal finances, from the global market sell-off to an interest rate cut in September from the Federal Reserve. The major indexes (^DJI, ^IXIC, ^GSPC) are slipping as recession fears trigger a widespread sell-off among investors. However, Fort Washington Investment Advisors co-chief investment officer Chris Shipley believes the current downturn shouldn't cause investor panic. He notes the market had "a certain vulnerability" due to expectations of economic growth and lower inflation. Yet, there turned out to be "a little more economic weakness than the market was banking on," indicating the economy is entering "a more substantial slowdown." He views the current situation as an ideal buying opportunity, pointing to companies like Nvidia (NVDA), which hasn't seen low share prices since March or April, noting: "When stocks are on sale, it's time to start taking a look." Zacks Investment Management client portfolio manager Brian Mulberry argues that the market has been "a little bit overdue for a pullback like this." Amid the sell-off, he encourages investors to focus on companies with high-quality balance sheets, multiple revenue streams, low levels of debt, and good cash flow metrics. He points to consumer staples (XLP) as good investment opportunities. Some investors are concerned about the pullback's effects on their long-term retirement investments. Vanguard senior wealth advisor Cassandra Rupp, CFP, says, "We can only control what we can control," and breaks down some of the biggest mistakes when managing 401(k) plans: "Everyone's time horizon can be different. I mean, if we're speaking to some of this reporting in 401(k)'s for retirement savings, depends on what stage of your career you're at. We're seeing an increase in participant deferral rates above 4% now. So we're seeing more and more individuals start to automatically save out of their paychecks into these types of plans." Yahoo Finance Senior Columnist Kerry Hannon adds that if you're investing in a retirement account, you will experience periods where you're buying high and periods where you're buying low. In the end, it'll most likely even out. In response to recent signs of economic weakness, Wall Street is convinced the Federal Reserve will almost certainly cut rates by 50 basis points at their September meeting. However, with investors believing the Fed may be delayed in rate reductions, speculation is growing about a potential cut even sooner. Yahoo Finance Senior Reporter Jennifer Schonberger breaks down the details, discussing how the Fed can implement rate cuts outside of their scheduled meetings and historical trends that prompted emergency rate cuts. This post was written by Melanie Riehl Stocks are 'on sale,' it's time to shop: Investment advisor US stock markets (^DJI, ^IXIC, ^GSPC) are in decline as recession fears trigger a widespread sell-off among investors. Fort Washington Investment Advisors co-chief investment officer Chris Shipley joins Wealth to share his perspective on downward market trends. Shipley suggests the current downturn shouldn't cause investor panic. He notes the market had "a certain vulnerability" due to expectations of economic growth and lower inflation. However, he observes there turned out to be "a little more economic weakness than the market was banking on," indicating the economy is entering "a more substantial slowdown." "I think there's a lot of reason still to be optimistic about avoiding recession, but right now the market is shooting first and asking questions later," Shipley explains to Yahoo Finance. Regarding investment strategies, Shipley views the current situation as an ideal buying opportunity. He points to companies like Nvidia (NVDA), which hasn't seen low share prices since March or April, noting: "When stocks are on sale, it's time to start taking a look." For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Angel Smith The two tech stocks to buy despite major sector sell-off Nvidia (NVDA) and Apple (AAPL) are driving the tech-heavy Nasdaq Composite (^IXIC) into turmoil amid a major sell-off on Wall Street. D.A. Davidson senior software analyst Gil Luria joins Morning Brief to discuss the market movement and his top tech stock picks despite the dip. "There's traders selling because they're covering their yen carry trade. There's computer algorithmic trading that's selling because those traders sold. And then there's index fund computers that are selling because those two sold. What's not happening is somebody didn't wake up this morning and say Apple, Amazon (AMZN), and Microsoft (MSFT) are worth 5% less than they were on Friday. That's not happening," Luria explains. He says that fundamental-based investors haven't changed their minds since Friday, and the prospects for large cap tech companies will continue to do well. He adds that there are companies out there that will benefit from AI over the next few years, and that value is not yet reflected in the stock price. He points to Apple as one of those companies as a buying opportunity, explaining its AI integration will drive an iPhone upgrade cycle. He also points to Amazon as another opportunity, noting that its AWS (Amazon Web Services) segment has more room to grow as it strengthens its AI capabilities. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Melanie Riehl Crypto market, stocks plunge on broadening sell-off As stock market indexes tumble on Monday (^DJI, ^IXIC, ^GSPC), the cryptocurrency market is sinking in response. Bitcoin (BTC-USD) prices have plummeted over 10%, with crypto-related stocks MicroStrategy (MSTR), Robinhood (HOOD), and Coinbase (COIN) also suffering significant losses. Yahoo Finance reporter Josh Schafer analyzes the sell-off within the crypto space. 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 Buy long-term growth plays amid sell-off: Technical analyst Equity markets (^DJI, ^IXIC, ^GSPC) are experiencing a sharp decline on Monday as investors' recession fears intensify. The CBOE volatility index (^VIX) has surged to a 4-year high. Oppenheimer & Co. Inc. managing director and head of technical analysis Ari Wald joins Catalysts to discuss market outlooks on this broadening market sell-off. Wald characterizes the current market sell-off as "a pullback in an uptrend." He notes that the VIX's current level of 65 was "only exceeded during the depths of the Great Financial Crisis and the COVID lows," suggesting a market low could be on the horizon. For this downturn, Wald recommends plays with "long-term relative strength," favoring the Nasdaq 100 (^NDX) for long-term investors. He advises against small-cap stocks (^RUT): "As we think about the possibility of market breadth, small caps are likely going to be the first to peak." Regarding a potential Federal Reserve interest rate cut, Wald believes it will likely be a "reactionary cut" at this point, though he anticipates positive market momentum following such a move. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Angel Smith Wall Street raises pressure on Fed to take more aggressive rate action The pressure on the Federal Reserve to cut rates is rising in the wake of heavy selling on Wall Street and a disappointing jobs report that stoked recession fears. Sell-off similar to Black Monday, but it shall pass: Yardeni Stocks (^DJI, ^IXIC, ^GSPC) are taking a beating Monday morning as tech sell-offs drag down the major market indexes and volatility (^VIX) spikes higher. Is July's disappointing employment data mainly to blame? Yardeni Research President Ed Yardeni joins The Morning Brief to discuss how the unwinding in equity markets, especially overseas like in Japan's Nikkei 225 (^N225), is reminiscent of 1987's Black Monday, but not entirely indicative of a recession. "And I don't think this, what we're seeing here is attributable to an imminent recession or that we're in a recession now. I think this too shall pass and I think the economy is going to prove to be surprisingly resilient," Yardeni says, commenting on whether this may incentivize the Federal Reserve to push through an early interest rate cut or wait until September. 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. 3 drivers behind Monday's market downturn US stock markets (^DJI, ^IXIC,^GSPC) are falling as recession fears grip investors, triggering a widespread sell-off. Yahoo Finance Executive Editor Brian Sozzi examines three key factors potentially driving the downturn including the Federal Reserve's delay in implementing rate cuts, Warren Buffett's Berkshire Hathaway (BRK-A, BRK-B) reducing its positions in tech stocks, and a lack of return on investment (ROI) from Big Tech's AI ventures. 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 DSA vs. DMA: How Europe's twin digital regulations are hitting Big Tech It's no accident that the European Union's Digital Services Act and Digital Markets Act have such similar-sounding names: They were conceived together and, at the end of 2020, proposed in unison as a twin package of digital policy reforms. EU lawmakers had overwhelmingly approved them by mid-2022, and both regimes were fully up and running by early 2024. While each law aims to achieve distinct things, via its own set of differently applied rules, they are best understood as a joint response to B Wall Street will support heavy AI spending as long as everything else is going great When tech companies confess some weakness in their core operations, their AI spending becomes a liability. Heard on the Street Recap: Godzilla Minus 1,000 A combination of tepid U.S. economic data and an interest rate increase from the Bank of Japan sent richly-valued tech stocks tumbling last week. Then all hell broke loose on Monday with the main Japanese stock index tumbling 12.4% overnight–the most since America's 1987 stock market crash. Of course this Monday was nothing like Black Monday's 22.6% meltdown in terms of magnitude. AI Play Palantir Stock Surges On Q2 Revenue Beat, Strong Guidance Palantir delivered Q2 earnings and revenue that topped estimates while guidance came in well above expectations. Dow Jones Futures: 'Fear Index' Soars As Apple, Nvidia, Tesla Dive; AI Stock Palantir Surges On Earnings Dow Jones Futures: The VIX, known as the Fear Index, soared Monday, as Apple, Nvidia and Tesla plunged. Palantir surged on earnings late. Lucid Shares Gain as EV Maker Boosts Revenue Lucid Group's shares rallied in extended-hours trading Monday, after the electric-car maker's revenue surged ahead of Wall Street’s expectations and the company secured another tranche of funding. The electric-vehicle startup is still ramping up production of its first model, the Lucid Air, while it gets ready to release a new SUV model, called the Gravity, to customers this year.
