Tech Sector Cools Down Nasdaq's Winning Streak
Tech Sector Profit-Taking Caps Nasdaq Gain
Stock markets are taking a breather after a run of profits, with the tech-heavy Nasdaq seeing a slight dip. Despite this, Wall Street maintains a generally positive outlook.
Investors were cautious on U.S. exchanges. Indexes finished with mixed results: the Dow Jones Industrial Average climbed 0.7% to land at 42,323 points, the S&P 500 edged up 0.4% to 5,917 points, while the Nasdaq dropped 0.2% to a new total of 19,112 points, following some tech sector profit-taking.
The initial euphoria from the easing of trade tensions with China seems to be diminishing, according to traders. The ongoing trade disagreement between the U.S. and China, with both sides imposing high tariffs, continues to cast a shadow over the industry. "Despite the easing of tensions with China, the trade issue isn't yet resolved, and it'll take time for the effects to be seen in economic data," explained Ellen Zentner, chief U.S. economist at Morgan Stanley.
Walmart Masters Cost Hikes, Share Decline
U.S. production remained steady in April. April saw the U.S. retail sector perform above expectations, with revenues rising 0.1% compared to the previous month, despite trade-related uncertainty. Walmart, a U.S.-based retail giant, outperformed predictions for the quarter but warned of price increases. The company's stock, initially suffering losses, managed to recover slightly and settled with a drop of 0.5%.
A mega-merger between Foot Locker and competitor Dick's Sporting Goods caused a surge in Foot Locker's stock, which jumped by 85.7%. In the deal, Dick's will offer shareholders of Foot Locker either $24 in cash or 0.1168 shares of Dick's. Shares of Dick's slid 14.6%.
In the tech sector, Cisco's stock soared 4.8%. Raising its annual projection, the U.S. network equipment manufacturer credits continued strong demand for AI data centers. On the downside, a late-day report from the Wall Street Journal negatively impacted Meta's stock, causing it to slide 2.3%. The report indicated that the launch of the AI powerhouse, known as the "Behemoth," may be delayed due to concerns regarding AI capabilities.
UnitedHealth's stock plummeted 10.9% to a five-year low following allegations of potential fraud reported by the Wall Street Journal. The U.S. Justice Department is reportedly investigating UnitedHealth over rumored Medicare fraud allegations. The company insists that it has no knowledge of such a probe.
Iran Nuclear Deal Talks Push Oil Prices Lower
Suspicions of a potential nuclear agreement between the U.S. and Iran sent oil prices for both Brent and WTI tumbling by over 2% to $64.68 and $61.80 per barrel, respectively. President Trump hinted at progress in negotiations with Tehran, suggesting the possible return of more Iranian oil to the market.
The Dollar Index was trading around a 0.2% decline, hovering at 100.8 points on the foreign exchange market. Shifts in the U.S. Federal Reserve's future plans may be on the horizon, according to Fed Chair Jerome Powell, who pointed to significant changes in the economic landscape over the past five years. The central bank is currently reviewing its monetary policy strategy, last altered during the COVID-19 pandemic when full employment was prioritized.
- Dow Jones
- Wall Street
- Stock Prices
- Stock Trading
- The Dow Jones Industrial Average experienced a growth of 0.7% and reached 42,323 points, despite a cautious outlook from investors due to ongoing business and political uncertainties.
- The employment policy of Walmart had an impact on its stock as it warned of price increases, resulting in a 0.5% decline, despite outperforming predictions for the quarter.
- In stock trading, the merger between Foot Locker and Dick's Sporting Goods caused a surge in Foot Locker's stock, while shares of Dick's slid after the deal announcement.
- Technology companies like Cisco and Meta saw significant changes in their stock prices; Cisco's stock soared due to strong AI data center demand, while Meta's stock dropped following concerns about delays in the launch of an AI project known as the "Behemoth."
