📆 Thursday, July 25
► European stocks tumbled, led by a selloff in tech, but also with broad losses. The Stoxx 600 index dropped over 1%, extending the previous session’s losses from Wall Street. Major players like Nestle, Stellantis, and Kering reported earnings (or forecasts) that fell short of expectations, contributing to the decline. French stocks edged close to a 10% correction, influenced by the decreased demand (especially from China) in the luxury goods sector. Market participants are closely monitoring US GDP and initial jobless claims data due later today.
► US stock index futures declined further after the S&P 500's 2.3% slump on Wednesday which also snapped the longest streak without a 2% drop since 2007 – 356 sessions (!). The tech sector faced significant losses after very sharp losses and again disappointing earnings from Tesla. Also Alphabet saw selling despite a strong Q2 report. Other big tech companies fell in sympathy – also with an apparent reassessment on the cost and benefit calculus for the artificial intelligence ecosystem. On the other hand, IBM shares rose more than 4% after reporting second-quarter results that exceeded expectations, with a 1.9% revenue increase and an optimistic full-year free cash flow forecast. Treasury yields on two-year notes dropped to 4.35% amid growing expectations for rate cuts. Investors are looking ahead to next week’s Federal Reserve meeting and crucial economic data for further clues on the economic outlook (today US GDP growth data – due at 12:30 UTC+0).
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