{"id":89239,"date":"2024-08-07T15:58:10","date_gmt":"2024-08-07T12:58:10","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=89239"},"modified":"2026-02-04T13:43:09","modified_gmt":"2026-02-04T11:43:09","slug":"equities-outlook-equities-plummet","status":"publish","type":"post","link":"https:\/\/www.smartchinaeducation.com\/ar\/equities-outlook-equities-plummet\/","title":{"rendered":"Equities report: Equities plummet"},"content":{"rendered":"

The bearish tendencies for US stock markets of the past week seem to have resumed as per the movement of the three major US stock market indexes which all moved sharply lower as the week came to a close. Today we are to discuss the implications of the US Employment data which was released on Friday, the guilty verdict given to Google on Monday, Intel\u2019s CPU issues , Disney\u2019s earnings and next week\u2019s earnings releases and for a rounder view finish the report with a technical analysis of Nasdaq\u2019s Daily chart.<\/p>\n\n\n\n

US recession worries in focus<\/h2>\n\n\n\n

Following the US Employment data for July, widespread concerns about a potential recession in the US have risen. In particular, the unemployment rate was expected to remain steady at 4.1% and the average earnings growth rate to slow down to 3.7%, and the NFP figure to drop to 175k. Instead, the average earnings growth rate came in at 3.6%, the NFP figure dropped to 114k and the Unemployment rate ticked upwards to 4.3%, implying a loosening labour market in the US. As such, following the release of the US Employment data, widespread fears of a potential recession in the US led to a massive selloff across all asset classes, with investors opting to increase their cash holdings, possibly in order to re-enter the market once the dust settles. The sell-off led to a sharp decline in the US Equities markets, with all three major indexes moving sharply lower in addition to impacting Japan\u2019s Topix index , which tumbled more than 12% in the biggest sell-off since the \u201cBlack Monday\u201d crash of 1987. Nonetheless, should we see Fed policymakers adopting a more dovish tone in the coming week in order to ease market worries, it may further alleviate the market\u2019s concerns, which in turn may encourage investors to re-enter the market and thus could possibly provide support for US Equities.<\/p>\n\n\n\n

Google found guilty<\/h2>\n\n\n\n

Google (#GOOG) was found guilty on Monday of having an illegal monopoly over online search and related advertising. In particular, US District Judge Mehta stated that \u201cAfter having carefully considered and weighed the witness testimony and evidence, the court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly\u201d. The ruling is being hailed as a landmark case, in which the government has asked for a \u201cstructural relief\u201d which in theory could mean a break up of the company. Nonetheless, the ruling against Google (#GOOG) may weigh on the company\u2019s stock price , yet that may be determined in a future hearing where the potential fines or remedies will be decided.<\/p>\n\n\n\n

Intel\u2019s CPU crashes are in the hot seat<\/h2>\n\n\n\n

Intel\u2019s (#INTC) CPU\u2019s are once again the hot-seat with Intel\u2019s 13th and 14th generation CPU\u2019s having problems for months, with constant crashes and blue screens of death according to some media publications. The company has stated that it would push out a microcode patch in the middle of August that may fix the issue. Moreover, the issue has led to Intel announcing that it would provide an additional two-year warranty extension- from the date of purchase and up to a maximum of 5 years on Intel Core 13th and 14th generation desktop processors. The issues faced by Intel could potentially impact the company\u2019s revenue and sales and should the issue persist in their next-generation chips, it may weigh on the company\u2019s stock price.<\/p>\n\n\n\n

Disney earnings<\/h2>\n\n\n\n

Disney\u2019s earnings were released earlier on today. The company beat earnings per share and revenue expectations. The better-than-expected earnings report for Q2 of 2024 may provide support for the company\u2019s stock price. As such should the company continue to exceed the markets expectations in the following quarter it may further aid the company\u2019s stock price.<\/p>\n\n\n\n

Incoming earnings reports and Apple<\/h2>\n\n\n\n

As for incoming earnings reports we note Home Depot\u2019s (#HD) earnings on Tuesday, UBS (#UBS) on Wednesday and Walmart (#WMT) and Cisco (#CSCO) on Thursday.<\/p>\n\n\n\n

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US100 Cash Daily Chart<\/h2>\n\n\n\n
\"US100\/Nasdaq<\/figure>\n\n\n\n