Wall Street's Mixed Bag: Tech Dips as Profit-Taking Takes Over; Nasdaq's Sizzling Streak Cooling Off
Tech Sector Profit Taking Halts Nasdaq's Rise
Get the lowdown on today's market shenanigans!
A dash of cautious optimism permeates Wall Street, but the Nasdaq is taking a slight tumble after a series of rallies. A whopping multi-billion-dollar merger propels Foot-Locker's shares skyward nearly 90 percent.
Investors were on edge at U.S. exchanges. Crucial market indicators closed mixed: the Dow Jones clocked a 0.7% gain to reach 42,323 points, the broad-based S&P 500 added 0.4% to 5,917 points, while the tech-heavy Nasdaq dipped 0.2% to 19,112 points — a profit-taking casualty in the AI sector.
Market exhilaration over the relaxation of U.S.-China trade tensions is starting to wane, traders say. The U.S. president's hefty tariffs on Chinese goods continue to cast a gloomy shadow on the industry. "Despite the truce with China, the trade story ain't over, and it's gonna take some time for the tariffs to show up in economic data," Barbara Dariasz, chief U.S. economist at Morgan Stanley, spits out.
Walmart Sounds Alarm; Stock Slumps
U.S. manufacturing output remained stagnant in April. The U.S. retail sector outperformed forecasts, with revenues up a smidgen (0.1%) from the previous month, despite the uncertainties surrounding trade tensions. Walmart, the U.S.'s retail titan, nailed expectations for the quarter but issued a warning about potential price hikes. Its stock managed to recoup a chunk of its losses, ending the day down 0.5%.
Foot Locker's billion-dollar merger with Dick's Sporting Goods sent the sports retailer's stock soaring 85.7%. Dick's is offering $24 in cold, hard cash or 0.1168 Dick's shares for each Foot Locker share. Dick's stock plummeted 14.6%.
In tech, Cisco shares surged 4.8%. The United States' network equipment juggernaut upped its annual outlook, attributing the move to continued data center construction for AI. The Wall Street Journal dropped a bombshell that Meta shares took a hit (2.3%) due to worries about the capabilities of its top AI, "Behemoth."
UnitedHealth shares tumbled 10.9% to a five-year low following allegations of potential fraud. The U.S. Justice Department is reportedly leading a criminal investigation into possible Medicare fraud by UnitedHealth. The company, though, claims ignorance of the probe.
Iran Nuclear Deal on the Horizon? Oil Prices Feeling the Heat
Rumors of a potential nuclear deal between the U.S. and Iran sent Brent and WTI crude oil prices plummeting more than 2% — to $64.68 and $61.80 a barrel, respectively. President Trump hinted that the U.S. is on the brink of a deal with Tehran, which could flood the market with more Iranian oil.
The Dollar Index, trading on the foreign exchange market, weakened by approximately 0.2% to 100.8 points. In the upcoming months, currency fluctuations might make an appearance due to the U.S. Federal Reserve's anticipated maneuvers. Fed Chair Jerome Powell highlighted the dramatically altered economic landscape over the last five years. The central bank is now bent over its monetary policy strategy, last tweaked during the COVID-19 pandemic, as they grapple with a shift in priorities from maximum employment to a new unknown.
So there you have it: a rollercoaster ride through Wall Street's jungle of profits and losses! Stay tuned for more market madness!
Sources: ntv.de, ino/rts, Wall Street Journal, Bloomberg
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