On Thursday, US benchmark equity indexes witnessed a downward trend, prompted by market participants assessing the latest corporate earnings results alongside key economic indicators. The Nasdaq Composite experienced a notable decline of 2.3%, closing at 17,194.2, while the S&P 500 fell 1.4% to 5,446.7.
The Dow Jones Industrial Average also faced a dip of 1.2%, ending the day at 40,348. Notably, the technology sector recorded the most significant decrease compared to other sectors, while utilities emerged as the primary gainers during the session. In the realm of corporate news, shares of Moderna ($MRNA) plummeted by 21%, marking the steepest decline not only on the S&P 500 but also across the Nasdaq index.
Despite delivering better-than-expected second-quarter results, the pharmaceutical giant adjusted its full-year product sales guidance downward for its respiratory division, attributing this to intensifying competition within the US market coupled with subdued demand across the European Union. Similarly, Qualcomm ($QCOM) ranked among the poorer performers on both the S&P 500 and Nasdaq, witnessing a drop of 9.4%.
The company had released its fiscal third-quarter results late Wednesday, surpassing analyst expectations largely due to robust growth in automotive sales. However, Qualcomm tempered its outlook, warning of a potential revenue impact stemming from the US government's recent decision to revoke its export license for products destined for Huawei Technologies in China.
Conversely, shares of C.H. Robinson Worldwide ($CHRW) surged nearly 15%, earning the title of the top gainer on the S&P 500 after reporting second-quarter adjusted earnings that exceeded Wall Street's predictions. Additionally, Meta Platforms ($META) emerged as the second-best performer on the Nasdaq, with an increase of 4.8%.
The parent company of Facebook outperformed expectations in its second-quarter earnings and revenue reports, attributed to stronger-than-anticipated advertising revenue. In the bond market, the US two-year Treasury yield sharply decreased by 18.2 basis points, settling at 4.15%, while the yield on the 10-year note declined by 12.3 basis points to 3.98%.
This shift signals shifting perceptions on future economic conditions among investors. Turning to economic analysis, the US manufacturing sector continued to face challenges, sliding further into contraction in July compared to the previous month, as reported by the Institute for Supply Management. Additionally, data from S&P Global ($SPGI) indicated a downturn in activity within the sector.
Weekly applications for unemployment insurance rose unexpectedly in the US, hitting the highest level seen in almost a year, according to government reports. Moreover, US employers cut 25,885 jobs last month, reflecting a 47% decrease from June's figures, yet representing a 9% annual increase as reported by Challenger, Gray & Christmas.
On a forward-looking note, data from the Bureau of Labor Statistics is anticipated to reveal that the US economy added approximately 175,000 nonfarm jobs in July, down from June's gain of 206,000 jobs. In commodity markets, West Texas Intermediate crude oil prices slipped by 1.3%, settling at $76.91 per barrel on Thursday.
This follows observations of fluctuating commodity prices reacting to the broader economic sentiment. From the perspective of monetary policy, the Federal Reserve's monetary policy committee maintained its benchmark lending rate at a steady range of 5.25% to 5.50% during its latest meeting, marking the eighth consecutive pause.
Fed Chair Jerome Powell indicated that a rate cut in September is a possibility; however, he emphasized that decisions will ultimately remain dependent on forthcoming economic data. The latest statement from the Federal Open Market Committee provided no assurances regarding a September rate reduction, failing to meet market expectations for imminent policy easing within the next 48 days, as highlighted in a Thursday note from Stifel.
In precious metals, gold saw a moderate increase of 0.5%, reaching $2,486.30 per troy ounce, while silver experienced a decrease of 1.3%, settling at $28.57 per ounce. This reflects ongoing volatility in commodity markets as economic conditions continuously evolve..