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Stock Market Today: Live Updates
Stock futures surged on Wednesday evening following a significant tech-driven sell-off that left the Nasdaq Composite and the S&P 500 reeling. The Dow Jones Industrial Average futures rose by 78 points, a 0.2% increase, while the S&P 500 futures climbed by 0.2% and Nasdaq futures saw a 0.3% gain.
In after-hours trading, Ford Motor's shares plummeted by approximately 10% after the company reported second-quarter earnings that fell significantly short of analysts' predictions. Conversely, Chipotle's stock rose by around 3% after it exceeded both earnings and revenue forecasts, benefiting from increased customer traffic in its restaurants. IBM and ServiceNow saw their shares jump by 24% and 71%, respectively, after surpassing market expectations.
The trading session on Wednesday was marked by substantial declines for both the S&P 500 and Nasdaq, primarily influenced by disappointing quarterly results from Alphabet and Tesla. This downturn affected other major tech stocks and popular artificial intelligence companies like Nvidia and Microsoft, which also experienced declines. The broad-market index and the tech-centric benchmark both endured their worst day since 2022, while the Dow Jones Average fell approximately 504 points by the close of trading.
Investors are interpreting these recent drops as indicative of a necessary correction in an overvalued market, which is now witnessing a shift from large-cap technology stocks to smaller-cap stocks and more cyclical sectors.
Yung-Yu Ma, the chief investment officer for BMO Wealth Management, expressed on CNBC's "Closing Bell," "We are currently facing substantial uncertainty… There is an air of skepticism surrounding what artificial intelligence can achieve in terms of productivity at least in the short term. The market is currently in a 'show me' phase, seeking evidence of progress on a quicker timeline."
Ma noted that there are still robust sectors within the market, such as cruise and U.S. infrastructure. However, he cautioned that large-cap technology companies will likely "struggle for a while" until they can stabilize and present more substantial evidence regarding their AI-related outcomes.
Despite some prominent tech firms missing expectations this week, the overall earnings season has been positive, sustaining investor optimism. According to FactSet data, over 25% of S&P 500 companies have disclosed their second-quarter earnings thus far.
Looking ahead to Thursday, a fresh wave of financial reports is expected from companies such as Airlines, Kroger, and Hasbro, among others. Additionally, data on jobless claims and preliminary second-quarter GDP will be released prior to the market opening.
Original Article: https://www.cnbc.com/2024/07/24/stock-market-today-live-updates.html
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