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Stocks Decline Due to Geopolitical and Economic Concerns; Chipmakers and Bitcoin Prices Drop

Greetings, dear readers! Today’s trading session has been quite the rollercoaster ride as a sentiment of risk aversion hangs heavy over the markets, causing midday losses in both stocks and cryptocurrencies. In the face of geopolitical and economic uncertainties, investors are gravitating towards bonds seeking a safe haven.

Amidst the turmoil, Israeli Prime Minister Benjamin Netanyahu has made it clear that Israel will follow its own course of action regarding security matters, disregarding advice from allies. Meanwhile, Fed Chair Jerome Powell has dashed hopes for immediate rate cuts, expressing concerns about disinflation.

The S&P 500 is down by 0.5%, with the Nasdaq 100 faring even worse, dropping by 1.2%. The tech sector, particularly semiconductors, is taking a significant hit, with the VanEck Semiconductors ETF SMH plunging by 2.5%.

Investors are turning to Treasuries for stability, causing yields to fall by 8 basis points in the 10-year timeframe. The iShares 20+ Year Treasury Bond ETF TLT is rallying by 1%. Gold is slightly down by 0.5%, while silver is up by 0.8%.

Bitcoin BTC/USD is facing downward pressure, dropping by 5.2% and hitting an intraday low of $59,650, marking an 18% decline since its peak in March.

Insights into Major US Indices and ETFs

Major Indices Price 1-day Chg %
Dow Jones 37,743.82 -0.1%
Russell 2000 1,963.08 -0.5%
S&P 500 5,025.59 -0.5%
Nasdaq 100 17,524.58 -1.1%
Updated at 1:15 p.m. EDT

The SPDR S&P 500 ETF Trust SPY has fallen by 0.5% to $501.05, with the SPDR Dow Jones Industrial Average DIA moving down by 0.1% to $377.69. The tech-focused Invesco QQQ Trust QQQ is down by 1.1% to $426.78, as per data from Ailtra Pro.

In terms of sectors, the Utilities Select Sector SPDR Fund XLU is outperforming, up by 1.4%. Conversely, the Technology Select Sector SPDR Fund XLK is the major laggard, shedding 1%.

Companies Making Moves Today

  • United Airlines Holdings, Inc. UAL has surged by over 14% on the back of strong financial results, while peers like American Airlines Group Inc. AAL and Delta Airlines Inc. DAL are up by 4.5% and 2.5% respectively.
  • Other notable movers based on earnings reports include J.B. Hunt Transport Services, Inc. JBHT, down by 8%, Abbott Laboratories ABT, down by 2.5%, ASML Holding N.V. ASML, down by 7.5%, and First Horizon Corporation FHN, up by 2.2%.
  • GE Vernova Inc. GEV has rallied by 6% following an Outperform rating and $177 price target from BNP Paribas.
  • Stay tuned for earnings reports from companies like CSX Corp. CSX, Alcoa Corporation AA, Discover Financial Services DFS, and Las Vegas Sands Corp. LVS.

Explore further: Fund Managers Are The Most Optimistic Since 2022: ‘Bull Sentiment Not Quite At Close-Your-Eyes-And-Sell Levels’

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