Stock Market Sheds Points Today, Led by Big Blue's Struggles on the Dow Jones Index
Headline: U.S. Stock Markets Mixed as Nasdaq and S&P 500 Hit New Highs
The U.S. stock markets witnessed mixed performances on a given day, with the Nasdaq Composite and S&P 500 reaching new closing highs. The Nasdaq inched up by 0.2% to close at 21,058, while the S&P 500 rose 0.1% to end at 6,363.
Retail interest was noticeable in the options market for Krispy Kreme and Kohl's. However, Krispy Kreme (DNUT) experienced a 0.2% decrease, while Kohl's (KSS) saw a significant 10.8% increase. Tesla (TSLA) faced a setback with an 8.2% decrease, but Nvidia (NVDA) managed to gain 1.7%.
Tech giants like Microsoft (MSFT) and Alphabet (GOOGL) posted gains of 1.0% and 1.0% respectively, while Apple (AAPL) suffered a 0.4% loss. Meta Platforms (META) and Amazon.com (AMZN) both experienced increases of 0.2% and 1.7% respectively.
In the energy sector, Chevron (CVX) recorded an 1.8% rise.
The yield on the 10-year U.S. Treasury note increased to 4.402% from an earlier figure, while the 30-year yield inched back to 4.948% from a slightly higher figure. The yield on the 2-year Treasury note, however, rose to 3.912% from 3.884%.
IBM reported earnings of $2.80 per share on revenue of $17.0 billion, exceeding estimates. IBM's stock had outperformed the S&P 500 by more than three times year to date. Stifel analyst David Grossman reiterated his Buy rating and $310 12-month target price for IBM.
The Federal Reserve's upcoming meeting is scheduled from July 29 to July 30. Despite political pressure for a rate reduction, the Fed is widely expected to keep interest rates unchanged, maintaining a cautious "wait and see" approach until inflation trends and economic impacts become clearer.
The Dow Jones Industrial Average closed at 44,693, down 0.7%. Opendoor Technologies (OPEN) enjoyed a 5.7% increase.
The Fed's communication and Chair Jerome Powell's press conference will be crucial in guiding markets on future policy direction, as they will likely confirm a pause on rate changes, emphasize data dependency, and set the stage for possible easing later in 2025 depending on inflation and economic data. Investors will closely scrutinize Powell’s remarks for indications about the timing of these potential future cuts.
[1] Fed Rate Decision Expected to Hold Steady, Bloomberg, July 2025 [2] Fed Prepares to Maintain Rates, Wall Street Journal, July 2025 [3] Fed Signals Potential for Two Rate Cuts in 2025, CNBC, July 2025 [4] Polymarket Data Indicates 96-97% Chance of No Rate Cut at July Meeting, MarketWatch, July 2025
In light of the upcoming Federal Reserve meeting, consensus among analysts suggests that interest rates will remain unchanged, maintaining a steady direction for the stock market and financing sectors. As retail investors closely examine the performance of stocks like Krispy Kreme and Kohl's, trading activities portray contrasting outcomes with some experiencing gains, while others like Tesla face a decline.
