Highlights
Major stock indexes were mixed but mostly lower Thursday with semiconductor stocks falling back while the broader market advanced. The Dow industrials rose 1.1 percent, the S&P 500 declined 0.1percent and the Nasdaq was off 0.8 percent. Long-term bond yields rose while shorter yields slipped The dollar declined, and WTI oil prices dipped.
Weaker than expected payrolls data allayed some worries about near-term interest rate increases from the Federal Reserve, and that boosted risk appetite and stocks. Meanwhile, a decent reading from the Institute for Supply Management manufacturing report suggested economic resilience.
Momentum plays in the chip sector continued to unwind on the view that the trade has been overdone. Outperformers included financials, health care, materials, energy, and consumer staples. Lagging were industrials, consumer discretionary, communications services, and technology. Meta and Tesla were notable decliners weighing on the market.
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.