The stock market showed mixed results in late trading, with the S&P 500 edging 0.2% higher after experiencing its first back-to-back weekly losses since April. The Dow Jones Industrial Average was down slightly, while the Nasdaq composite saw a 0.2% increase.
ON Semiconductor led the market with a significant 12% jump after reporting stronger-than-expected profits for the spring. Despite falling short of forecasts, McDonald’s saw a 4.2% increase in its stock price, with analysts noting that its performance at U.S. restaurants was better than anticipated.
However, oil-and-gas companies faced declines as the price of oil dropped, with Exxon Mobil and Chevron both losing 0.9% amid concerns about China’s slowing economy.
Big Tech stocks, including Microsoft, Meta Platforms, Apple, and Amazon, are set to report their earnings later in the week, with their performances closely watched due to their significant impact on the market.
The recent slowdown in Big Tech stocks comes after a period of record highs driven by investor excitement around artificial intelligence technology. However, concerns about overvaluation and the emergence of more attractive alternatives have led to a shift in market sentiment.
Despite the challenges faced by Big Tech, other sectors, particularly smaller stocks, have seen gains on expectations of a potential interest rate cut by the Federal Reserve to combat slowing inflation.
The Fed’s upcoming policy meeting on interest rates will be closely monitored, with expectations for a possible easing in September. Treasury yields have slightly decreased, with the 10-year Treasury yield slipping to 4.16%.
In international markets, Japan’s Nikkei 225 index surged 2.1%, while indexes in Hong Kong and Shanghai saw modest gains following positive industrial profit data in China.
Overall, the stock market remains volatile as investors navigate shifting economic conditions and await key decisions from central banks.
