Nasdaq falls again while Dow advances
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Traders work on the floor of the New York Stock Exchange, in New York City.
PHOTO: AFP
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NEW YORK - The tech-rich Nasdaq tumbled again while the Dow forged higher on July 30 as investors continued to steer funds away from artificial intelligence equities towards other sectors.
The ongoing so-called “rotation” from tech giants to smaller and medium-sized company comes as some of the biggest tech companies are set to report quarterly results in the coming days.
But Mr Art Hogan, chief market strategist at B. Riley Wealth, noted that this buying trend may be almost over now that Microsoft, Nvidia and others have fallen significantly from their peaks.
The Dow Jones Industrial Average gained 0.5 per cent to 40,743.33.
The broad-based S&P 500 dropped 0.5 per cent to 5,436.44, while the tech-rich Nasdaq Composite Index fell 1.3 per cent to 17,147.42.
Microsoft reported after the market closed on July 30, while Apple, Amazon and Facebook parent Meta will report over the next two days.
“This rotation likely stops when we get the majority of these mega caps to report,” Mr Hogan said.
Among individual companies, Procter & Gamble dropped 4.9 per cent as it reported a seven percent fall in quarterly profits on flat sales. Solid US and European sales offset by continued weakness in China.
Merck sank nearly 10 per cent despite reporting better than expected profits. Analysts cited disappointing sales for the drugmaker’s Gardasil vaccine in China.
Crowdstrike also plunged nearly 10 per cent following reports Delta hired attorney David Boies to seek damages following an IT outage that threw the airline’s operations into turmoil for several days.
Besides the deluge of corporate earnings, this week’s calendar includes the July 31 Fed decision, as well as monthly US employment data on Aug 2. AFP
