On Thursday, U.S. stocks encountered a sell-off. The Dow Jones Industrial Average fell 353 points (-1.31%) to 26652, the S&P 500 dropped 40 points (-1.23%) to 3235, and the Nasdaq 100 slumped 290 points (-2.67%) to 10580.
Nasdaq 100 Index: Daily Chart
Source: GAIN Capital, TradingView
Market sentiment was dampened by a spike in unemployment claims and worries of a new round of lockdowns amid rising coronavirus cases.
Technology Hardware & Equipment (-3.26%), Software & Services (-2.55%) and Retailing (-2.48%) sectors lost the most. Citrix Systems (CTXS -12.93%), Allegion Plc (ALLE -8.10%), Align Technology (ALGN -5.95%) and Chipotle Mexican Grill (CMG -5.42%) were the top losers.
On the technical side, about 57.0% (53.4% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 89.3% (87.5% in the prior session) were trading above their 20-day moving average.
In after-marker hours, Intel (INTC -1.06%) posted second quarter adjusted earnings per share of $1.23 (beating expectations) while warning of further delays in development of its superfast seven-nanometer chip technology.
U.S. official data showed that Initial Jobless Claims rose to 1.416 million for the week ended July 18 (1.300 million expected), while Continuing Claims unexpectedly fell to 16.197 million for the week ended July 11 (17.100 million expected).
The Conference Board Leading Index increased 2.0% on month in June (+2.1% expected).
Due later today are reports on Markit U.S. Manufacturing Purchasing Managers' Index (a rise in July preliminary reading to 52.0 expected) and New Homes Sales (an increase in June annualized rate of 700,000 units expected).
European stocks were little changed. The Stoxx Europe 600 Index, Germany's DAX 30, France's CAC 40 and the U.K.'s FTSE 100 were all broadly flat at close.
The benchmark U.S. 10-year Treasury yield remained under pressure drifting lower to 0.581%.
Spot gold price advanced a further $16.00 (+0.9%) to $1,887 an ounce extending its winning streak to a fifth session. On the other hand, spot silver retreated 1.8% to $22.59 an ounce halting a four-day rally.
U.S. WTI crude oil futures (August) lost 2.0% to settle at $41.07 a barrel.
On the forex front, the ICE U.S. Dollar Index fell 0.2% on day to 94.78, down for a fifth straight session.
EUR/USD rose 0.3% to 1.1600, posting a five-day rally. Official data showed that the eurozone's Consumer Confidence Index slipped to -15.0 in July (-12.0 expected) from -14.7 in June. On the other hand, Research firm Markit will release the eurozone's July Manufacturing PMI (50.1 expected) and Services PMI (51.0 expected) later in the day.
GBP/USD was little changed at 1.2736. Later today, the Markit U.K. Manufacturing PMI (52.0 expected) and Services PMI (51.5 expected) for July will be reported.
USD/JPY dropped 0.3% to 106.85.
AUD/USD lost 0.5% to 0.7103.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.