The S&P 500 and Nasdaq, riding a record-breaking winning streak, faced downward pressure on Thursday as a selloff in technology shares weighed on investor sentiment. Meanwhile, the Dow Jones Industrial Average managed to edge higher amid mixed market signals.
A significant development in the financial markets was the sharp decline in the yield on the 10-year Treasury note, accompanied by a weakening dollar against major currencies. These movements came in response to unexpected news from a consumer price report for June, indicating a surprising decrease in inflation.
Investor optimism was spurred by the prospect of potential interest rate cuts by the Federal Reserve in light of the inflation data, prompting varied reactions across different sectors. Stocks in the housing industry, including Builders FirstSource (BLDR), D.R. Horton (DHI), and Home Depot (HD), saw robust gains on hopes that lower borrowing costs would stimulate home sales.
In the technology sector, shares of Enphase Energy (ENPH) and other solar-power companies rallied. SoundHound AI (SOUN) also saw its stock rise after announcing an expansion of its voice assistant technology into more Stellantis (STLA)-brand vehicles in Europe.
Conversely, airline stocks experienced a notable decline following Delta Air Lines (DAL) reporting earnings that fell short of expectations, coupled with a cautious outlook for the summer travel season. Similarly, Conagra Brands (CAG) faced a downturn in its stock price after issuing guidance below market forecasts, citing a challenging consumer environment.
Costco Wholesale (COST) shares retreated after the company announced its first annual membership fee increase in seven years.
Commodity markets showed mixed results with oil and gold futures trending higher, while prices for cryptocurrencies such as bitcoin and ether also saw gains in recent trading.
