Sat. Feb 3rd, 2024

U.S. Stock Market Update: Caution Amid Tech Sector Retreat

U.S. Stock Market Update: Caution Amid Tech Sector RetreatU.S. Stock Market Update: Caution Amid Tech Sector RetreatManhattan with skyscrapers.

In today’s U.S. stock market, caution prevails as investors pull back from gains witnessed in the tech sector during the previous session. The Dow Jones Industrial Average is down 255 points (0.7%), the S&P 500 trades 27 points (0.6%) lower, and the NASDAQ Composite experiences a decline of 90 points (0.6%).

Tech-Led Gains Offset by Caution

Despite Monday’s positive closing figures, driven by significant gains from chip designer Nvidia, investors are approaching the market with caution leading up to Thursday’s release of U.S. inflation data. This key data is highly anticipated for insights into the Federal Reserve’s plans regarding interest rates in the upcoming quarter.

Concerns Surrounding Core Inflation Figure

The core inflation figure is projected to increase by 0.2% month-on-month, bringing the annual pace down to 3.8%, a level not seen since mid-2021. Market sentiment is likely to be strongly influenced by these crucial inflation metrics.

Corporate Highlights

Boeing faces a 1.3% drop in stock value following reports of loose parts on some grounded 737 Max 9 jets. Conversely, Match Group sees a surge of over 10% after news breaks that activist investor Elliott Investment Management has acquired a stake of approximately $1 billion in the dating app company.

Juniper Networks experiences a significant uptick of over 20% amid reports of advanced negotiations with Hewlett Packard Enterprise for an acquisition valued at around $13 billion. Meanwhile, Tilray records a 5.5% increase in stock value after reporting robust performance in its marijuana and beverage divisions, resulting in record-high revenues.

Oil Prices Rebound

Oil prices rebound following losses in the previous session. U.S. crude futures climb 1.8% to $72.02 a barrel, and Brent rises by 1.7% to $77.38 a barrel. Ongoing Middle East tensions, fueled by the Israel-Hamas conflict, contribute to concerns about potential disruptions to oil supplies.

Gold Futures and Forex Movement

Gold futures rise by 0.4% to $2,042.50/oz, while the EUR/USD forex pair trades 0.1% lower at 1.0945.

Upcoming API Inventories and Official Data

Traders await the latest reading of U.S. crude inventories from the American Petroleum Institute, with Wednesday’s official data release on the horizon.

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