Welcome to Extreme Investor Network, where we bring you the latest news and analysis from the world of stock trading, Wall Street, and the stock market. Today, we’re diving into the recent developments that have been shaking up the market.
S&P 500 Ends Record Streak
After 52 consecutive trading sessions of record highs, the S&P 500 finally saw a decline of at least 1%. This marks the longest such streak since January 2020, with the broad index falling 1.4%. The main culprit? Chipmakers, who were identified as the driving force behind the slump.
Semiconductor Sector Under Pressure
The PHLX Semiconductor Sector Index took a significant hit on Wednesday, tumbling 6.8% and underperforming the broader market. According to Bank of America analyst Vivek Arya, this rout was likely driven by investor positioning rather than fundamentals. Despite the dip, Arya notes that artificial intelligence remains a strong area for capital expenditures.
Market Rotation Favors Small Caps
While tech stocks are facing challenges, small-cap stocks are gaining momentum. The Russell 2000 has surged around 10% in the past five trading days, reflecting growing optimism in these names. Charlie Ripley, senior investment strategist at Allianz, attributes this shift to expectations of Fed easing, which is seen as positive for small businesses.
Economic Data and Earnings
In terms of economic data, initial jobless claims rose to 243,000 for the week ending July 13, surpassing expectations. On the other hand, the Philadelphia Federal Reserve’s manufacturing index unexpectedly rose to 13.9 in July, indicating expansion in the sector.
Stay tuned to Extreme Investor Network for more updates and insights on the ever-changing world of stock trading and the stock market. Don’t miss out on valuable information that can help you make informed investment decisions.