Wall Street facing pressure due to weak job data; attention on stocks like Amazon, Apple, Microsoft, Coinbase, Arm Holdings, and ExxonMobil
Wall Street experienced a rocky beginning to August, following a relatively calm July, as escalating U.S. tariffs and weaker-than-expected economic data took their toll on the market.
The S&P 500 plummeted by 1.6% on the first trading day of August, snapping a streak of July tranquility during which the S&P 500 posted no daily moves over 1% and set 10 record closes. This downturn was sparked by President Trump's imposition of new tariffs, a disappointing July jobs report that saw only 73,000 jobs added, and significant downward revisions to prior months' payroll figures, raising doubts about the U.S. labor market's strength and economic credibility.
August's historically weak seasonal patterns further exacerbated market volatility, with August being recognized as the Dow's weakest month and the second weakest for both the S&P 500 and Nasdaq indices. This seasonal trend, combined with the tariff conflicts and negative economic signals, left investors feeling uneasy.
The "Magnificent 7" technology companies, which are typically the largest and most influential tech firms, had contributed significantly to market gains during the previous months, including July 2021. However, concerns about tariffs and economic data growth threatened the broader tech sector's momentum. Although specific performance details of the Magnificent 7 at the start of August 2021 are not explicit in the search results, the overall market dip suggests that tech stocks likely faced downward pressure in line with the broader market retreat due to the negative tariff news and macroeconomic concerns.
As August progresses, both the Dow Jones Industrial Average and the Nasdaq 100 are expected to start trading with a bearish trend. The Dow Jones Industrial Average is projected to open 1.0% lower at 43,705 points on Friday, while the Nasdaq 100 is forecasted to open down 1.2% at 22,949 points.
For the month of July, the Dow Jones Industrial Average recorded a minimal gain of 0.1%, while the Nasdaq 100 rose by 2.4%. However, for the week, the Dow Jones Industrial Average suffered a loss of around 2.7%, and the Nasdaq 100 experienced a weekly decline of 1.4%.
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[1] Source: CNBC [2] Source: Investopedia
Investors are feeling uneasy as the tech sector's momentum may be threatened by concerns about tariffs and economic data growth, considering the Magnificent 7 technology companies have significantly contributed to market gains in recent months.
Despite the Dow Jones Industrial Average and Nasdaq 100 recording minimal gains in July, both are expected to start trading with a bearish trend in the upcoming days, as August is historically known for market volatility, compounded by tariff conflicts and negative economic signals.
