US equity indexes saw a decline after midday Thursday as quarterly earnings reports began to surface and jobless claims unexpectedly rose. The Nasdaq Composite dropped by 0.9%, settling at 17,840.9, while the S&P 500 fell by 0.7% to 5,552.2, and the Dow Jones Industrial Average decreased by 0.8%, landing at 40,873.6.
This drop follows a particularly challenging Wednesday for the Nasdaq, which recorded a staggering 2.8% decrease, marking its worst performance since 2022. This decline was primarily driven by a wave of selling in chip stocks, spurred by reports hinting at tighter export restrictions from the US, as highlighted in a note from D.A.
Davidson. In the sector performance across the board, technology stocks emerged as some of the hardest hit, while real estate exhibited resilience, showcasing gains as the second-highest sector performer by Thursday afternoon. This week is poised to show technology experiencing the steepest decline, in contrast to real estate, which is on track for the most significant gains.
This performance trajectory appears to reflect a broader investment strategy among market players as they prepare for anticipated monetary policy easing in September, all while navigating the complexities of ongoing geopolitical tensions. In corporate news, Taiwan Semiconductor Manufacturing Company ($TSM) announced an impressive rise in its Q2 earnings, surpassing sales expectations set by analysts.
Despite this positive news, shares of the Taiwanese chipmaker, which finds itself amid geopolitical challenges, saw a decline of 3% intraday. Competitor Nvidia ($NVDA) enjoyed a more positive day, climbing 1.8% during the same period, while Broadcom ($AVGO) also saw a slight increase of 0.6%. However, Qualcomm ($QCOM) fell by 1% intraday amid broader market pressures. Another noteworthy company, Domino's Pizza ($DPZ), reported a year-over-year increase in its second-quarter results.
However, the pizza giant has temporarily halted its long-term projections for global net store growth, which prompted a significant drop in its shares, sinking over 13% intraday, making it the worst performer on the S&P 500 for that session. On a more positive note, D.R. Horton ($DHI) experienced a remarkable surge, with shares soaring 10.5% intraday after the company reported fiscal Q3 results that exceeded expectations.
This performance placed D.R. Horton at the forefront of gainers on the S&P 500. From an economic perspective, the US 10-year Treasury yield saw an uptick of 3.1 basis points, reaching 4.18%, while the two-year rate climbed by 1.9 basis points to 4.45%. In terms of labor market health, initial jobless claims in the US rose to 243,000 for the week ending July 13, an increase from the previously revised figure of 223,000.
This unexpected rise is notably higher than the analysts' expectations of 229,000, based on a survey conducted by Bloomberg. Furthermore, the four-week moving average gained 1,000, bringing it to 234,750. In the energy sector, West Texas Intermediate crude oil prices increased by 0.5%, now trading at $83.24 a barrel, as market dynamics continue to fluctuate due to various global factors. The market remains vigilant as earnings reports continue to influence investor sentiment and economic data paints a complex picture of recovery and growth..