empty
10.08.2023 02:16 PM
US stock market in downtrend

This image is no longer relevant

The US stock indices are trading with a slight dip of up to 1.5%. Specifically, the Dow Jones Industrial Average fell by 0.54%, the broad-based S&P 500 ended down by 0.7%, while the tech-heavy NASDAQ dropped by 1.17%.

The primary reason for the market's jittery sentiment is the anticipation of the release of fresh inflation data for the past month. Analysts expect an annualized consumer price index to accelerate to 3.3% in July from 3% in June.

This metric plays a significant role in guiding the US Federal Reserve's future monetary policy decisions. However, some experts argue that even a minor uptick in consumer price growth may not heavily influence the Fed's actions.

Here, consumer sentiments also matter. If they remain optimistic, the chances of further interest rate hikes will be minimal.

The corporate earnings season continues. Investors' attention was particularly drawn to Lyft's report, which led to a 5% decline in its share price. While the company reported revenue growth, it wasn't as high as anticipated, suggesting that Lyft is still struggling to fully recover from the pandemic's effects.

Among the Dow Jones components, Dow Inc led with a 0.96% surge in its stock price, followed by Honeywell International Inc, which rose by 0.85%, and Caterpillar Inc, which climbed by 0.58%. On the flip side, shares of other corporations dropped in value: Salesforce Inc fell by 2.7%, Intel Corporation declined by 2.11%, and Goldman Sachs Group Inc shed 1.6%.

In the S&P 500 index, Axon Enterprise Inc witnessed the most substantial growth of 14.06%, followed by Akamai Technologies Inc, up by 8.47%, and Fleetcor Technologies Inc, appreciating by 6.29%. On the contrary, some companies showed a dip in their stock prices: NVIDIA Corporation went down by 4.72%, Paramount Global Class B decreased by 4.46%, and Broadcom Inc dropped by 3.67%.

For NASDAQ components, the top performers were shares of Tango Therapeutics Inc, surging by 103.92%, Renovaro Biosciences Inc, rising by 82.35%, and Decibel Therapeutics Inc, gaining 80.29%.

Several companies experienced a decrease in their stock prices: Palisade Bio Inc's shares fell by a staggering 62.5%, Bruush Oral Care Inc Unit dipped by 44.94%, and Yellow Corp's stocks retreated by 44.81%.

On the New York Stock Exchange, the number of stocks that decreased in price (1,593) marginally surpassed the number of stocks that appreciated (1,324). Meanwhile, NASDAQ paints a different picture: the number of stocks that declined (2,225) was almost double the number that increased (1,284).

Akamai Technologies Inc's stock value hit its annual peak, closing at $102.99. Conversely, another stock's price plummeted to a record low, settling at $0.72.

The futures market for gold and oil also witnessed changes: gold futures dropped by 0.57%, trading at $1.00 per troy ounce. In contrast, oil prices surged with WTI increasing by 1.62% to $84.26 per barrel, and Brent oil up by 1.47% to $87.44 per barrel.

What lies ahead?

Despite a short-term decline in US stock indices, experts remain optimistic about future prospects. According to analysts' assessments, Wall Street's indices have already added around 20% this year, with further growth anticipated.

Notably, experts forecast the S&P 500 index to rise to 14,000 within the next decade, by 2034. Such predictions indicate a strong bullish trend in the market. Analysts believe the bull market cycle, which commenced in 2016, will last between 16 to 18 years.

If the experts' forecasts prove to be accurate and the S&P 500 indeed hits the 14,000 mark, it would represent a 209% growth compared to the current average annual growth rate of 10%.

These evaluations are based on a long-term analysis of the S&P 500 index chart dating back to the 1930s. Such extended bull cycles, like the one currently projected, were observed in the 1950s and 1960s and again in the 1980s and 1990s. On average, returns for the index during these cycles amounted to 2,300%. However, periods of growth were intermittently marked by prolonged downtrends.

Therefore, experts advise investors to overlook short-term stock sell-offs and view them as opportunities to strategically acquire stocks for the long run. Volatility may persist throughout the earnings season and into the end of the current quarter. Yet, market participants should stick to their strategies and maintain optimism.

Anastasia Kravtsova,
Analytical expert of InstaTrade
© 2007-2025

Recommended Stories

What could tip USD: NFP, Fed moves, or Big Beautiful Bill?

Wall Street keeps churning out record after record. On Wednesday, the S&P 500 , driven by IT giants, once again set a fresh all-time high. The catalyst was not only

Svetlana Radchenko 13:17 2025-07-03 UTC+2

US Market News Digest for July 3

The S&P 500 index once again reached an all-time high thanks to sustained demand for technology stocks and a positive reaction to the US-Vietnam trade agreement on tariffs. Investors

Ekaterina Kiseleva 12:58 2025-07-03 UTC+2

Stocks Ride: Nasdaq Jumps, S&P Rises, Dow Falls — There's More Behind It

Nasdaq Closes 0.94%; S&P 500 Up 0.47%; Dow Down 0.02% Centene Falls After Cutting 2025 Outlook Tesla Rises, Rebounds From Early Week Losses Wall Street Futures Up 0.1%, Nikkei Flat

Thomas Frank 10:28 2025-07-03 UTC+2

US Market News Digest for July 2

The S&P 500 index declined by 0.11%, the Nasdaq 100 lost 0.82%, while the Dow Jones rose by 0.91%. Investors are awaiting the release of macroeconomic data that could influence

Ekaterina Kiseleva 12:32 2025-07-02 UTC+2

Tesla falls, European stocks rise

Tesla Shares Fall as Musk-Trump Feud Renews Powell Doesn't Rule Out July Rate Cut Mixed Signals in US Manufacturing Labor and Contracts European Stocks Rise on Wednesday, Led by Industrial

Thomas Frank 10:56 2025-07-02 UTC+2

Stock Market Rises Higher: What's Pushing Dow, Nasdaq, S&P Higher

Bank Stocks Rise After Fed Stress Test Tesla Shares Fall Gold Rises as Oil Prices Fall on OPEC+ Output Expectations Zealand Pharma Gains After BNP Opens Coverage with 'Outperformance' InPost

Thomas Frank 12:11 2025-07-01 UTC+2

US Market News Digest for July 1

Monday's trading ended in positive territory: the S&P 500 rose by 0.52%, while the Nasdaq 100 added 0.47%. The start of the second half of the year unfolded amid optimistic

Ekaterina Kiseleva 11:43 2025-07-01 UTC+2

What could Bitcoin encounter in July? Market grimaces

The second month of summer is traditionally considered a favorable period for Bitcoin. It's quite possible that the pattern will repeat this year, and BTC may begin its ascent toward

Larisa Kolesnikova 10:58 2025-07-01 UTC+2

US Market News Digest for June 30

US equity markets closed higher: the S&P 500 and Nasdaq 100 both gained 0.52%, while the Dow Jones rose by 1.00%. Investors welcomed progress in trade negotiations, which

Ekaterina Kiseleva 11:15 2025-06-30 UTC+2

Hedge funds sell energy at record pace - what are they afraid of?

Hedge funds sold energy stocks last week at the fastest pace since September 2024 and the second fastest in 10 years as oil prices fell on easing tensions

Thomas Frank 11:14 2025-06-30 UTC+2
Can't speak right now?
Ask your question in the chat.
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.

We are sorry for any inconvenience caused by this message.