Stocks had a mixed, see-saw week as disappointing corporate reports unsettled investors who appeared to rotate away from some leading groups in favor of other names.
The Dow Jones Industrial Average picked up 0.75 percent. Meanwhile, the Standard & Poor’s 500 Index declined 0.83 percent, and the Nasdaq Composite Index dropped 2.08 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, fell 1.49 percent for the week through Thursday’s close.1
Q2 Corporate Reports Start
Last week began with some positive momentum, but after Tuesday’s close, two influential tech companies reported disappointing Q2 numbers, which soured sentiment. On Wednesday, the S&P dropped 2 percent, and the Nasdaq fell more than 3 percent.
Stocks attempted to rebound on Thursday on news that gross domestic product grew much faster than expected in Q2, but sellers swooped in near the close.3
Stocks rallied broadly on Friday after a positive inflation report. The personal consumption expenditures index, widely considered the Fed’s preferred inflation measure, showed only a slight uptick in June—in line with expectations.4
Watch the Rotation
July 26 saw the end of the third consecutive week in which the Dow led the other two averages and its fourth straight week of gains.
At the same time, the S&P and Nasdaq have been under pressure, with both posting losses for the second consecutive week.
So far in July, the Dow is up nearly 4 percent, the S&P is down slightly, and the Nasdaq is off by over 2 percent. That’s a marked change from earlier in the year when the Nasdaq led.5
Footnotes and Sources
- The Wall Street Journal, July 26, 2024
- The Wall Street Journal, July 26, 2024
- The Wall Street Journal, July 25, 2024
- CNBC.com, July 26, 2024
- The Wall Street Journal, July 26, 2024
