High-flying tech stocks plunged in Monday's trading as investors avoided artificial intelligence-linked stocks. The yield on U.S. Treasury notes dropped for the third day in a row as recession fears gather momentum on Wall Street.

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Worries of a weakening economic backdrop raised fears of a further slowdown in corporate earnings in the second half, sending ripples around the world. The 10-year Treasury yield dropped below 4% and to the lowest since February. 

Benchmark indexes turned volatile after initial jobless claims rose to a one-year high, unit labor cost increases slowed in the second quarter, and factory activities shrank in July. 

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Meta Platforms tightened its annual capital expenditure spending plans. Microsoft's quarterly results were ahead of market expectations, but the company's cloud segment revenue growth fell short of expectations. Arm Holdings reported a surge in revenue in the latest quarter, but the current quarter's revenue outlook disappointed investors. 

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U.S. major indexes turned lower amid earnings jitters ahead of the quarterly results from Microsoft, AMD, Apple, Amazon, and Meta Platforms. GDP growth in the eurozone was steady in the second quarter. Foreign direct investment flow to China dropped sharply in the first half. 

Stock market indexes traded around the flatline amid a flood of mixed quarterly results. Job openings edged slightly lower in June, and hiring rate dropped to a nearly four-year low.

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World markets brace for monetary policy decisions from major central banks, U.S. labor market updates, earnings from leading tech companies, inflation updates in Europe, and a first look at the business activities in the third quarter in China this week. 



Optimism prevailed on Wall Street ahead of earnings from mega-cap tech companies and the Federal Reserve's policy decisions this week.

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U.S. major averages rebounded and trimmed this week's losses as the market headed for a second weekly decline in a row as volatility returns. 

U.S. stocks rebounded, and investors favored smaller cap names. The U.S. economy expanded at a faster pace in the second quarter, and durable goods orders declined for the first time in four months. European markets eased after a batch of weak earnings. The Nikkei 225 dropped to a three-month low as the yen strengthened. 

Gross domestic product in the second quarter accelerated amid rising consumer spending, higher investment in inventories, and nonresidential fixed investment. 

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S&P 500 Down 1.8%, Nasdaq Drops 2.9%

Jul 24, 2024
Alexander Garcia
The U.S. major averages extended this week's losses after Alphabet and Tesla reported earnings that fell short of market expectations. European market indexes closed down after a batch of mixed earnings. China indexes dropped amid weak earnings growth expectations and a protracted property market slump.

The S&P 500 index and the Nasdaq dropped more than 1% after Tesla's automotive unit revenue declined for the second quarter in a row and Google-parent Alphabet reported revenue growth weakness in its YouTube unit.

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U.S. and European market indexes traded in a tight range as investors reviewed a fresh batch of earnings. India's Union Budget ramped up infrastructure spending and targeted a lower annual budget deficit amid rising tax collection. 



Investors generally reacted positively to the latest batch of earnings. Tesla and Google-parent Alphabet are set to announce their quarterly results after the close.

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