Finance
Why stocks tumbled today
If you are a stock-market bull, you had to love Wednesday’s open. That was the best part of the day.
Stocks shot up to their highs of the day within a half-hour of the open. And spent the rest of the day giving up all of their gains.
By 10 a.m., the Standard & Poor’s 500 Index was up as much as 1.7%, the Nasdaq Composite jumped 2%, and the Dow Jones industrials were up 1.2%.
Steadily and surely, however, the gains evaporated entirely. The Nasdaq finished down 1.1% at 16,195.81. The S&P 500 was off 0.8% at 5,199.50.
The Dow’s loss was 0.6%, but the point loss was dramatic. The blue-chip index had been up as many as 480 points but ended down 234 points— a 714-point swing.
Related: Midday stock movers: Super Micro tumbles; Apple up; Tesla, Rivian down
Here’s why the market lost its mojo.
Tech stocks were weak. Super Micro Computer (SMCI) , maker of high-end servers that handle the loads generated by AI applications, reported disappointing earnings and fell a whopping 20% to $492.70. Dell Technologies (DELL) , a Super Micro Competitor, fell 7.2%. Nvidia (NVDA) dropped 5.1%. Intel fell 3.5%. Microsoft (MSFT) fell 0.3%. Apple (AAPL) , however, was up 1.3%.
Disney earnings didn’t impress. Walt Disney (DIS) shares fell 4.5% to $86.96. The company’s earnings were mixed. The entertainment giant reported the first profit ever for its Disney+ streaming service, and CEO Bob Iger sees more gains ahead. But the company said that attendance at its theme parks was softer than expected.
More Economic Analysis:
Biotechs had a hard day. Dow component Amgen (AMGN) fell 5%. The Nasdaq Biotechnology Index was off 1.3%.
Michael M. Santiago/Getty Images
Bond yields were higher. Bad for everyone, especially home buyers. The 10-year Treasury yield jumped up to 3.96% from 3.897% on Tuesday.
The culprit: An auction of 10-year notes generated higher-than-expected yields as bond investors worry about higher federal deficits no matter who is elected president in November.
The iShares 20+ Year Treasury Bond ETF (TLT) fell 0.7% to 95.91. It’s off a bit more than 4% since reaching $99.94 on Monday. Worries about the economy. While it’s hard to find anyone sure that a nasty recession is coming, uncertainty has crept into chatter.
The immediate worry is the weekly report on initial jobless claims due Thursday. The consensus estimate is about 241,000 claims. A week ago, claims came in at 249,000 when Wall Street was looking for 236,000.
Monday hangover continues. Lastly, after Monday’s ugly slump, it takes time for stocks to stabilize. Probably more time than investors and brokerages would like.
A symptom of the unease was Wednesday’s decline. There was another signal on Tuesday when a huge rebound from Monday debacle faded by about half. A big question is if the market will retest its Monday’s lows before it can start a real recovery. The S&P 500’s bottom on Monday was 5,119.26
Related: Veteran fund manager sees world of pain coming for stocks
Today’s installment of campaign-related news items from across the country.
* When it comes to campaign finance laws, both parties’ campaign committees have faced restrictions on how much money they could spend in coordination with candidates’ campaigns. Those limits are now effectively gone.
As MS NOW’s Jordan Rubin explained, “The Supreme Court’s GOP-appointed majority ruled for Republicans in their campaign finance challenge to restrictions on political parties spending on ads with input from the party’s candidate.”
A Punchbowl News report added that the ruling, written by Justice Brett Kavanaugh, “handed Republicans a massive win” and is likely to “usher in the biggest change to campaign finance law since the Citizens United decision.”
The same report went on to note that Tuesday’s high court ruling “allows for unrestricted coordination between candidates and party committees. That means committees, like the NRSC or the DCCC, can run unlimited TV ads with allied candidates. More importantly, they can also buy those ads at the much cheaper rate offered to candidates. … Tuesday’s SCOTUS ruling will also eradicate the need for independent expenditure arms at party committees.”
Republicans already enjoyed a significant financial advantage over Democrats. The Republican-appointed justices just made it easier for the GOP to capitalize on that advantage.
* In Colorado’s closely watched Democratic primaries, incumbent Sen. John Hickenlooper fended off a challenge from the left, but some of his colleagues weren’t as fortune: Democratic socialist Melat Kiros ended long-serving Rep. Diana DeGette’s career in Denver’s congressional district, while state Attorney General Phil Weiser scored a major upset by defeating incumbent Sen. Michael Bennet in a gubernatorial primary.
* In the race for North Carolina’s open Senate seat, former Democratic Gov. Roy Cooper leads former Republican National Committee Chairman Michael Whatley in the latest New York Times/Siena poll, 50% to 43%, pointing to a possible pickup opportunity for Democrats.
Google Cloud and FactSet, a provider of data and artificial intelligence solutions to the financial markets, plan to jointly develop AI agents designed to assist with portfolio operations, deal advisory and corporate finance.
Tuesday’s Supreme Court ruling changing certain federal campaign finance limits could make a big difference in the battle for control of Congress this fall, giving Republican candidates who have been getting outraised by opponents direct access to more party cash.
Limited time: Save 25% on NBC News subscription
Get exclusive reporting, live Q&As and ad-free reading.
-
Wyoming2 minutes agoYoung bull moose captured wandering Laramie, relocated by Game and Fish
-
Crypto5 minutes agoWebinar: Crypto and public pensions—risks, rewards, and fiduciary duties
-
Finance10 minutes agoWednesday’s Campaign Round-Up, 7.1.26: Justices help GOP with campaign finance ruling
-
Fitness17 minutes agoI’ve been doing the bird dog exercise instead of planks to improve my core strength – it’s even better for beginners
-
Movie Reviews25 minutes agoNeil’s Movie Reviews
-
World35 minutes agoRussia Approved Secret China Military Training At Top Level: Reuters
-
Science55 minutes agoThis Cell Feeds, Grows and Reproduces. And It’s Manmade.
-
Lifestyle1 hour agoGreetings from London, where Banksy’s flag man is a warning cry
