Market Commentary - Foreign Markets
Dow closes at record high, Nasdaq turns lower As on : 27-Aug-24  12:43

Sentiments were mixed for the US stocks as tech counters came under some selloff following recent gains. While the Dow hit a new record closing high, the tech-heavy Nasdaq dipped after posting a strong gain last week. The Dow closed up 65.44 points or 0.2 percent at 41,240.52. However, the Nasdaq slid 152.03 points or 0.9 percent to 17,725.77 and the S&P 500 fell 17.77 points or 0.3 percent at 5,616.84.

Energy stocks soared as the price of crude oil surged amid geopolitical concerns after Israel and Hezbollah traded a barrage of strikes across the Lebanon border. WTI Crude oil futures soared around 3% yesterday as sustained upmove stayed in place amid concerns over potential Middle East conflict and supply risks. Additionally, the prospect of less restrictive monetary policy, signaled by Fed Chair Jerome Powell, also supported oil prices. WTI Crude oil futures hit one week high above $77 per barrel following this spike.

Meanwhile, substantial weakness among semiconductor stocks weighed on the Nasdaq, with the Philadelphia Semiconductor Index slumping by 2.5 percent.

Economic cues were also upbeat. With orders for transportation equipment showing a substantial rebound, the Commerce Department released a report on Monday showing a sharp increase by new orders for U.S. manufactured durable goods in the month of July. The Commerce Department said durable goods orders spiked by 9.9 percent in July after tumbling by a revised 6.9 percent in June. The significant rebound by durable goods orders came as orders for transportation equipment jumped by 34.8 percent in July after plummeting by 20.6 percent in June.

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