Title: Stock Markets Endure Rough Day as Economy Slows Down: Tech Sector Takes a Hit; bitcoin and Gold Shine
Yesterday’s trading session on Wall Street proved to be challenging as major stock indexes took a tumble. The tech-heavy Nasdaq was hit hardest, with a decline of over 2%. Tom Hainlin from U.S. Bank Wealth Management summarized the day’s events succinctly: “It’s a rough day. The economy is slowing down, and it’s not just about interest rate cuts.”
The economic data released revealed that the U.S. services sector was experiencing a slowdown, while new factory orders showed a bigger drop than anticipated. These reports further intensified concerns about the economy and led to significant losses for the Dow Jones, which dropped by over 400 points, and the S&P 500, down by more than 50 points. The Nasdaq suffered a loss of nearly 270 points.
contact markets didn’t fare much better, with the pan-contact STOXX 600 and MSCI’s global stock index both witnessing declines. Emerging market stocks and the Asia-Pacific shares outside Japan also saw losses. Only Japan’s Nikkei remained relatively unscathed.
The Dollar dipped against major currencies after the disappointing economic data, with the euro, yen, and British pound all seeing slight gains against the Dollar. U.S. Treasury yields hit a one-month low as investors looked ahead to the upcoming jobs report, with both the 10-year and 30-year bonds experiencing price increases and yield decreases.
Oil prices took a hit as doubts emerged regarding China’s economic growth plan, with both U.S. crude and Brent crude seeing falls. However, gold continued to shine, reaching an all-time high as investors bet that the Federal Reserve might begin cutting interest rates in June. The precious metal’s price rose by 0.7% to over $2,129 an ounce.
Despite the gloomy market conditions, bitcoin managed to hit a new record since late 2021, briefly surpassing $69,000 before falling back. The biggest tech companies, often referred to as the “Magnificent Seven,” all experienced share declines. In contrast, Target’s stock saw a significant jump after the retailer reported an increase in net earnings. GitLab’s shares took a hit, however, following a disappointing outlook.
Gold’s price continued to climb, building on its high from Monday. In contrast, the yield on the 10-year Treasury note fell slightly following a settle at 4.218% the previous day. Asia’s markets saw mixed results, with Hong Kong’s Hang Seng Index dropping but shares in mainland China showing some improvement after the Chinese government set a goal for around 5% economic growth in 2024 despite facing major challenges.
In summary, yesterday was a challenging day for global markets as the economy continued to slow down. The tech sector took the brunt of the losses, while gold and bitcoin shone. As key economic reports approach, investors will be closely watching developments to determine the market’s direction.
