Highlights
Losses in megacaps whacked stocks Thursday as risk-off momentum carried over from Wednesday and Meta became the latest member of the Magnificent Seven to lead the selloff after disappointing results.
The Dow Jones industrial average lost 0.8 percent, the S&P 500 fell 1.2 percent, and the Nasdaq dropped 1.8 percent. US Treasury yields and oil prices declined while the dollar rose.
Investors continue to fear fallout from the Middle East situation and an impending widening in the conflict. Bears are focusing on disappointing company results and corporate commentary suggesting the macroeconomic backdrop is weaker than the day's upside surprise on gross domestic product would suggest. Analysts harped on the idea that consumer spending would falter headed into year end after powering growth through the summer.
Communications services and information technology shares lagged as Apple and Microsoft joined Meta in selling off. UPS was another big loser after warning about slowing package deliveries. Falling oil prices on a gloomier economic outlook weighed on energy stocks. Consumer discretionary, health care, and consumer staples also lagged. Holding up relatively well were utilities, materials, industrials, and real estate.
The Dow Jones industrial average lost 0.8 percent, the S&P 500 fell 1.2 percent, and the Nasdaq dropped 1.8 percent. US Treasury yields and oil prices declined while the dollar rose.
Investors continue to fear fallout from the Middle East situation and an impending widening in the conflict. Bears are focusing on disappointing company results and corporate commentary suggesting the macroeconomic backdrop is weaker than the day's upside surprise on gross domestic product would suggest. Analysts harped on the idea that consumer spending would falter headed into year end after powering growth through the summer.
Communications services and information technology shares lagged as Apple and Microsoft joined Meta in selling off. UPS was another big loser after warning about slowing package deliveries. Falling oil prices on a gloomier economic outlook weighed on energy stocks. Consumer discretionary, health care, and consumer staples also lagged. Holding up relatively well were utilities, materials, industrials, and real estate.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
