Market Commentary - Foreign Markets
US markets mixed, DOW hits fresh high while NASDAQ plummets As on : 18-Jul-24  12:32

The US markets saw a mixed outing yesterday though the DOW stayed supported. The sentiments were driven by geopolitical concerns with the broad focus being on the tech counters. The Nasdaq Composite suffered its worst session since December 2022, losing around 3%, as semiconductors came under pressure amid reports of tougher trade restrictions. Chip stocks plummeted amid potentially tighter restrictions on US exports to China and escalating geopolitical tensions.

However, Dow hit a new high as prospect of an interest rate cut continued to benefit the sentiments. The Dow closed with a gain of 0.59% at 41,198.08. The S&P 500 lost 1.39% at 5,588.27, while the Nasdaq shed 2.77% to 17,996.92. Semiconductor stocks fell, resulting in the Philadelphia Semiconductor index suffering a loss of nearly 7%.

Meanwhile, the Federal Reserve reported that industrial production in the US rose by 0.6 percent in June after jumping by 0.9 percent in May. Another report said housing starts shot up by 3.0 percent to an annual rate of 1.353 million in June after plunging by 4.6 percent to a revised rate of 1.314 million in May. The Commerce Department said building permits also surged by 3.4 percent to an annual rate of 1.446 million in June after sliding by 2.8 percent to a revised rate of 1.399 million in May.

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