Market Commentary - Foreign Markets
US Stocks Finish Lower As on : 12-Jul-24  11:03

U.S. stocks finished lower on Thursday, driven by a broad sell-off in stocks as investors assessed the impact of potential lower interest rates on the corporate sector. The tech-heavy Nasdaq posted a particularly steep loss on the day, plunging 364.04 points or 2.0 percent to 18,283.41, while the S&P 500 slumped 49.37 points or 0.9 percent to 5,584.54. The narrower Dow, on the other hand, spent most of the day lingering near the unchanged line before closing up 32.39 points or 0.1 percent at 39,753.85.

Semiconductor stocks moved sharply lower over the course of the session, giving back ground following recent strength in the sector. Software and computer hardware stocks also showed notable moves to the downside, contributing to the steep drop by the tech-heavy Nasdaq. On the other hand, housing stocks saw substantial strength amid optimism about lower interest rates.

The Labor Department said its consumer price index slipped by 0.1 percent in June after coming in unchanged in May. The unexpected dip by consumer prices came as another steep drop by gasoline prices more than offset a continued increase in shelter costs. Excluding food and energy prices, core consumer prices crept up by 0.1 percent in June after rising by 0.2 percent in May. Core prices were expected to increase by another 0.2 percent. The report also said the annual rate of consumer price growth slowed to 3.0 percent in June from 3.3 percent in May. The annual rate of core consumer price growth also slowed to 3.3 percent in June from 3.4 percent in May. The pace of growth was expected to remain unchanged.

Meanwhile, the yield on the benchmark 10-year US government bond tumbled to its lowest level since March, dragging the US Dollar to a three-month trough. Benchmark yields are quoting at 4.21% while DXY futures are at 104.17.

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