As the week comes to a close, let’s recap some key financial headlines that impacted the markets. From tech stock tumbles to oil price shifts and the UK labor market's effect on the pound, here are the standout stories you need to know 👇
*It is important to remember to assess your financial situation and risk tolerance, before engaging in copy trading. Past performance does not guarantee future success.
Dow falls 500 points, Nasdaq slides as tech rout continues
Tech stocks failed to make a comeback this week, as a sell-off broadened after the Nasdaq's worst day since 2022. The tech-heavy Nasdaq ($NAS100) fell more than 0.7%, while the S&P 500 ($SPX500) lost around 0.8%. The Dow Jones ($US30) slipped more than 1%, or nearly 550 points, following an all-time closing record for the blue-chip index in the prior session.
The rally on Wall Street hit increasing turbulence this week as political, geopolitical, and trade risks unsettled a market that was finally confident that the Fed would cut interest rates this year. A sign the labor market is cooling further bolstered those rate-cut hopes on Thursday, as the number of continuing applications for unemployment benefits once again hit its highest level since November 2021.
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Netflix adds 8 million subscribers, disappoints on revenue outlook
Netflix ($NFLX) reported second quarter earnings on Thursday that initially sent the stock 6% lower in after-hours trading after the streaming giant's revenue outlook missed Wall Street's expectations for the current quarter. But shares recovered during the earnings call as investors digested another 8 million-plus subscriber gain and a beat on both the top and bottom lines.
Revenue hit $9.56 billion in Q2, an increase of 16.8% compared to the same period last year, as the streamer continued to lean into top-line initiatives like its crackdown on password sharing and ad-supported tier, in addition to last year's price hikes on certain subscription plans. Analysts were expecting $9.53 billion.
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Oil declines with focus on China’s slowdown and supply outlook
Oil edged lower on concerns that Chinese growth may slow and jeopardize consumption, while OPEC+ looks to be still on track to loosen supply curbs later this year.
Brent crude fell toward $84 a barrel after ending little changed on Thursday, while West Texas Intermediate was near $82. The end of China’s Third Plenum this week brought few signs that the top leadership is preparing to unleash major steps to boost demand or arrest the nation’s property slump.
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UK jobs data cooled the Pound
The UK labour market is experiencing a cooling phase. The number of applications for unemployment benefits in June increased by 32.3K after a jump of 51.9K a month earlier. Prior to that, this indicator had been drifting for almost two years, adding an average of 2.5K per month.
The rise in claimant count claims may be evidence of worsening economic conditions, strengthening the hand of inflation doves on the Bank of England's Monetary Policy Committee. In this regard, weaker-than-expected data caused pressure on GBP/USD, forcing it to retreat to 1.2980 against the highs recorded at 1.3040 a day earlier.
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This concludes our weekly recap. Have a great weekend and see you next week! 👋
