The S&P 500 took a hit, major tech stocks like Nvidia and Qualcomm saw significant drops, and a bad Crowdstrike update caused IT chaos. Meanwhile, Joe Biden dropped out of the presidential race to endorse Kamala Harris, Bosch is eyeing Whirlpool, and we’ve got some big earnings reports to watch. Plus, Trump’s evolving stance on crypto is shaking up the market. Don’t miss this week’s GDP estimates and the latest on jobless claims and PCE reports.
S&P 500 Slips and Tech Stocks Suffer
The S&P 500 dropped around 3% last week, marking a tough period for investors. The Electronic Tech Sector was hit especially hard, with giants like Nvidia, ASML, Qualcomm, and Micron Technologies experiencing significant losses on both weekly and monthly charts. These declines are causing ripples across the market, making investors cautious about tech valuations and possibly affecting consumer confidence in tech-driven growth.
Crowdstrike Update Causes IT Chaos
In tech news, a problematic update from Crowdstrike led to major global IT outages, causing infamous “Blue Screen of Death” errors across major Windows-based platforms. This disruption was so severe it grounded hundreds of flights across the US. The fallout has been widespread, with businesses facing operational downtime and financial losses from the flight disruptions. Crowdstrike’s reputation has taken a hit as well. Check out the full story here.
Biden Exits Presidential Race, Endorses Harris
On the political front, Joe Biden shocked the race by announcing his withdrawal from the 2024 presidential race, throwing his support behind Kamala Harris. This significant political shift has turned heads, with market sentiment and policy expectations likely to be influenced by Harris’s policy stances depending on her likelihood of defeated Donald Trump. More details here.
Bosch Eyes Whirlpool
Bosch is considering a bid for appliance maker Whirlpool.
This potential acquisition could lead to significant changes in the home appliance market, potentially increasing market consolidation and altering competitive dynamics within the industry. Keep an eye on this developing story here.
Key Earnings Reports to Watch
Earnings season is heating up with big names like Google, Mattel, Lockheed Martin, Tesla, General Electric, General Motors, General Dynamics, AT&T, and QuantumScape reporting this week. Tesla and QuantumScape, in particular, will be under the spotlight as their results will shed light on the current state of the EV market. These reports will provide insight into various sectors’ health and broader economic conditions.
Crypto Surges on Trump’s Election Chances
Crypto prices have spiked following an increased likelihood of Trump winning the election. Trump’s newfound support for crypto and his VP pick, JD Vance, a Bitcoin owner, are driving market excitement. This shift could influence regulatory policies and impact investor behavior in the financial markets. More importantly will be the fate of Gary Gensler’s career at the SEC if a more crypto-friendly administration takes the reigns of the executive branch.
Chart of the Day: Stagnating Business Sales
Last week, we highlighted stagnating business sales over the last two years in our Chart of the Day. The Commercial Services and Retail Trade Sectors continue to lag, showing red for the month and week among major Market Movers. This stagnation points to underlying economic challenges, such as reduced consumer spending and business investment, which could affect broader economic growth and recovery.
Upcoming Economic Reports
Looking ahead, this Thursday brings Q2 2024 GDP estimates, with economists predicting continued economic contraction. We’ll also see the weekly jobless claims report. On Friday, the PCE (Personal Consumption Expenditures) report will be released, a key metric the Fed will be watching closely as Jerome Powell considers potential rate cuts, possibly as early as September. These reports will provide crucial insights into the state of the economy, influencing policy decisions and market reactions.
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