In the latest updates from the US equity markets, indexes displayed a range of fluctuations, primarily influenced by government bond yields during a turbulent midday trading session on Friday. The Nasdaq Composite saw a marginal decline of 0.3%, settling at 16,612.7, while the S&P 500 dipped slightly by 0.1% to 5,314.6.
The Dow Jones Industrial Average was also not spared, falling 0.1% to 39,393.5. Within the sectors, communications services and industrials emerged as the most notable decliners during intraday trading. In contrast, health care and real estate sectors stood out as leaders in gains, showcasing an interesting divergence in market performance across different industries. Meanwhile, the CBOE's Volatility Index (VIX)—often referred to as the fear gauge—demonstrated a significant decrease of 7.1%, closing at 20.09, indicating a potential easing in market anxiety among investors. In the commodities market, West Texas Intermediate crude oil experienced a modest rise of 0.6%, reaching $76.68 per barrel.
This uptick in oil prices comes against a backdrop of escalating geopolitical tensions, particularly as Israel anticipates Iran's response to the assassination of a senior Hamas official in Tehran last week. The rhetoric from Iran's leadership has been particularly severe, vowing retaliation against Israel for the deadly airstrike, which raises concerns about a broader conflict in the Middle East that could jeopardize the vital oil supplies from the Persian Gulf.
Saxo Bank highlighted in a recent note that as the market sentiment around crude prices begins to stabilize, traders are shifting their focus back to potential supply risks associated with the turbulent geopolitical landscape in that region. On the fixed income side, the majority of Treasury yields saw a decline, with the yield on the 10-year note dropping by 5.3 basis points to 3.94%.
The two-year yield experienced a smaller decline, falling less than one basis point to 4.04%. Turning to corporate news, Akamai Technologies ($AKAM) reported impressive second-quarter results, showcasing a significant increase in non-GAAP earnings and sales that exceeded market expectations. The company also raised its earnings per share (EPS) guidance for 2024, which propelled its shares to gain 10.8% during the trading day, marking it as the top performer on the S&P 500. Conversely, Intel Corporation ($INTC) faced negative headlines as its senior unsecured rating was downgraded by Moody's from A3 to BAA1, raising concerns regarding the chipmaker's profitability.
This news led to a substantial decline in Intel's shares, which dropped by 4.8% intraday, making it one of the poorest performers across the S&P 500, the Dow, and the Nasdaq indexes. As we continue to analyze market movements, factors such as earnings reports, geopolitical events, and economic indicators will remain key to understanding the trajectory of US equity indexes..