Why is the stock market down today? Potential reasons
The stock market experienced a flat performance on July 18. Uncertainties over tariffs and trade policies affect market sentiment.
The stock market on Friday, July 18, fell flat after hovering near record highs, Yahoo Finance reported. The new economic data from the US and the latest earnings report led to mixed results. At 11:02 am ET, the Nasdaq 100 was trading at 23,040.58, 0.1 per cent lower.
The Dow Jones Industrial Average fell 192 points or 0.4 percent. A slide of 3 per cent in American Express’ earnings dragged the average of the 30-stock group. As per CNBC, Tesla’s stock rose over 3 per cent. Amazon and Alphabet’s shares were also higher.
Also read: ‘Won’t take orders from gringo': Brazil's Lula after Donald Trump imposes 50% tariff
Stock market this week
This week, the S&P 500 rose 0.8 per cent while the Dow and Nasdaq rose 0.2 per cent and 1.8 per cent, respectively, Reuters reported. As per the news agency, the University of Michigan's Consumer Sentiment Index rose from 60.7 in June to 61.8 this month.
The two indexes ended at record levels on Thursday, thanks to a growth in retail sales and reduction in jobless claims, signaling a resilient economy and giving the Federal Reserve room to look out for tariff-driven inflation.
{{/usCountry}}The two indexes ended at record levels on Thursday, thanks to a growth in retail sales and reduction in jobless claims, signaling a resilient economy and giving the Federal Reserve room to look out for tariff-driven inflation.
{{/usCountry}}Shares of cryptocurrency firms also rose after the House of Representatives passed a bill to develop a regulatory framework for crypto.
{{/usCountry}}Shares of cryptocurrency firms also rose after the House of Representatives passed a bill to develop a regulatory framework for crypto.
{{/usCountry}}Also read: Donald Trump 'highly unlikely' to fire Federal Reserve's Jerome Powell
Trump's tariff deadline looms over stock market
{{/usCountry}}Also read: Donald Trump 'highly unlikely' to fire Federal Reserve's Jerome Powell
Trump's tariff deadline looms over stock market
{{/usCountry}}The August 1 tariff deadline and uncertainty over US President Donald Trump's trade policies loom over the markets despite the past week’s performance. Furthermore, reports of Trump removing Federal Reserve Chair Jerome Powell briefly rattled the markets, though the president was quick to shoot down the speculation.
{{/usCountry}}The August 1 tariff deadline and uncertainty over US President Donald Trump's trade policies loom over the markets despite the past week’s performance. Furthermore, reports of Trump removing Federal Reserve Chair Jerome Powell briefly rattled the markets, though the president was quick to shoot down the speculation.
{{/usCountry}}Against this backdrop, traders now see a 56 per cent chance of a Federal Reserve rate cut in September, while a July move is all but off the table, according to CME’s FedWatch tool.
As the second-quarter earnings season gets underway, early results from 59 S&P 500 companies that reported showed more than 81.4 per cent have topped Wall Street's earnings expectations, according to LSEG I/B/E/S data.
FAQs
How has the stock market been this week?
The stock market has recorded positive momentum in the past week.
Will Jerome Powell be removed?
Donald Trump dismissed speculation about the matter.
Is there a chance of a rate cut in September?
Traders see a 56 per cent chance of a Federal Reserve rate cut in September, as per Reuters.
