Stock markets staged a significant rebound on July 30, following a sharp decline the previous day. The tech-focused Nasdaq Composite closed 2.8% higher, the S&P 500 gained 1.7%, and the Dow Jones Industrial Average rose 1.2%, adding 600 points to recover from its worst day in 15 months.
Technology shares led the rally after mixed earnings reports from major companies. Microsoft surged 16% to pace gains in the Dow after beating analyst expectations, pushing the company’s market value above $3.5 trillion. Meta Platforms, however, declined 8% after reporting profits that missed estimates due to rising costs. Memory and semiconductor stocks experienced particularly strong performance, with the Roundhill Memory ETF jumping 16% and the iShares Semiconductor ETF gaining 8.5%, while individual memory stocks posted gains between 12% and 26%.
Economic data released during the session painted a mixed picture of the U.S. economy. Personal Consumption Expenditures inflation readings matched expectations, with the Federal Reserve’s preferred inflation gauge showing prices rose 3.7% over 12 months in June, down from 4.1% in May. Core PCE increased 3.3% annually, down from 3.4% the prior month. However, second-quarter Gross Domestic Product growth came in at 1.5%, below the 1.8% forecast and the prior quarter’s 2.1% expansion. The 10-year Treasury yield fell below 4.67%, down from above 4.68% the previous day.
Market participants continued to assess the implications of the Federal Reserve’s decision to maintain interest rates and Chair Kevin Warsh’s commitment to fighting inflation. According to the CME Group’s FedWatch tool, traders priced in a 63% chance of a rate increase at the September meeting, down from 82% a week earlier. Commodity markets showed varied performance, with oil prices declining amid reassessments of military tensions, West Texas Intermediate futures falling 1.1% to $83.50 per barrel, while gold futures rose 3.4% to $4,170 per ounce and Bitcoin traded around $64,800.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI