MARKET WRAP

Stocks got slammed today amid fears the Fed could be too late to cut interest rates.

The S&P 500 was down 1.4%, the Nasdaq was down 2.3%, and the Russell 2000 was down nearly 3%, marking its worst day of the year.

Semis led the Nasdaq lower as chip stocks saw a big reversal today. Names like Lam Research, Qualcomm, Broadcom, and AMD fell 8% or more in the session, while the SMH semiconductor ETF was down 6.5%. The technology sector was down more than 4% in the session.

Intel reported earnings after the market close. The company missed on the top and bottom line, said it was cutting 15% of its workforce, and has suspended its dividend. The stock was down immediately following its report.

Amazon also reported a revenue miss and weak guidance moments ago but beat on EPS.

Meta and Eli Lilly were bright spots, closing up 4.5% and 3.5%, respectively.

Meta’s move was on the heels of its earnings report, which showed the company’s heavy spending on AI is starting to pay off.

CNBC reports that the rally in Eli Lilly was due to the drug Zepboung showing a lower risk of heart failure in a late-stage study. This is the latest sign that some GLP-1 drugs have benefits beyond weight loss.

Other areas in the green include Utilities, up nearly 2% and hitting its highest level since 2022.

Investors also piled into telecom, defense, and pharma names, signaling a risk-off environment.

MRKT MATRIX: August 1, 2024

Today’s Top Stories:

• Dow slides 600 points, on track for biggest sell-off of 2024 (CNBC)

• Bond Traders Are Fully Pricing In Three Fed Rate Cuts This Year (Bloomberg)

• September Rate Cut Would Thrust Fed Into Brutal Election Campaign (WSJ)

• US Job Market’s Pandemic Unwind Puts Recession Signals to Test (Bloomberg)

• China’s Private Factory Gauge Dips for First Time in Nine Months (Bloomberg)

Today’s MRKT Call is Presented by FactSet

Chart Check: Amazon & Apple Earnings Preview

Dan Nathan, Guy Adami and Carter Worth break down the top market headlines and bring you stock market trade ideas for Thursday, August 1st.

Timecodes

• 0:00 - Semi Update

• 17:00 - AMZN & AAPL Preview

• 26:30 - Gold

• 33:30 - Crude

• 36:15 - Yields

• 44:45 - Audience Q&A

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