MARKET WRAP

The broader market sold off today as investors continued to rotate out of technology names into more rate-sensitive stocks.

The S&P 500 fell 1.4%, while the Nasdaq Composite fell 2.8% for its worst day of the year. All of the Mag 7 stocks –Nvidia, Meta, Tesla, Amazon, Apple, Microsoft, and Alphabet—closed in the red. Nvidia and Meta were both down by more than 6%.

CNBC notes this shift comes as investors anticipate a September rate cut, which could benefit small caps and companies with higher financing costs.

Still, the small-cap Russell 2000 index fell nearly 1%, snapping a five-day winning streak. The index hit a 52-week high earlier in the session.

Consumer Staples was the best-performing sector, up 1.32%.

On the other hand, the tech sector fell 3.5%, driven by losses in high-flying chip stocks.

Concerns over tighter restrictions in China sparked weakness in the group.

The SMH semiconductor ETF was down 7%, marking its worst day since 2022.

Names like Applied Materials, Advanced Micro Devices, Marvell, and Lam Research were down more than 10% in the session.

According to CNBC, ASML and Taiwan Semi shares posted their worst sessions since 2020, falling nearly 13% and more than 8%, respectively.

Intel was the only stock in the group to buck the trend, closing the day higher by around half of a percent.

MRKT MATRIX: July 17 , 2024

Today’s Top Stories:

• Nasdaq drops nearly 3%, Dow industrials gain as investors continue rotation out of tech stocks (CNBC)

• US Floats Tougher Trade Rules to Rein In China Chip Industry (Bloomberg)

• Trump on Taxes, Tariffs, Jerome Powell and More (Bloomberg)

• Retail investors in AI stocks may get burned like they did in past bubbles, says Bank of America (CNBC)

• Early Tesla Backer Debuts Funds Tied to Musk’s xAI, SpaceX (Bloomberg)

• US single-family housing starts hit eight-month low; green shoots in manufacturing (Reuters)

• Taylor Swift May Have Killed an August Rate Cut (Bloomberg)

Today’s MRKT Call is Presented by SoFi

Tech Tremors Spark Market Selloff

Dan Nathan, Guy Adami and Carter Worth break down the top market headlines and bring you stock market trade ideas for Wednesday, July 17th.

Timecodes

• 0:00 - Stocks Sell-Off

• 8:30 - Yields & Big Banks

• 12:30 - Regional Banks ($KRE)

• 22:00 - Chips Dip

• 28:30 - Earnings Insight

• 35:20 - Audience Q&A

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Today’s Okay, Computer. is Presented by RBC and Current

The Killer AI Device is Already in 2 Billion Pockets

Dan Nathan and Deirdre Bosa, host of CNBC's Tech Check, delve into the AI craze in both public and private markets, analyzing Google's potential $23 billion acquisition of Israeli AI firm Wiz. They discuss the AI industry's rapid growth, the cautious market outlook from influential players like Goldman Sachs and Sequoia Capital, and expectations for Q2 tech earnings. The conversation also touches on the regulatory landscape and its impact on significant deals and the new race for tech companies to develop small language models.

Chef and restaurateur Ryan Hardy of Delicious Hospitality Group joins after the break. Ryan delves into his culinary origin story, starting from his Kentucky roots and his professional growth in San Francisco during the 90s, to his eventual success in New York City with notable establishments like Charlie Bird and Pasquale Jones. Hardy shares his experience in curating airline menus for JetBlue, his business philosophy, and the challenges and opportunities of managing hospitality in an evolving technological landscape. The conversation also touches on Hardy's venture into hotel management, the impact of inflation, and the importance of mentorship in the hospitality industry.

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