“Dow Jones Futures: Market Correction Intensifies As These Titans Tumble; Amazon Falls Late – A Wake-Up Call for Investors in the Tech Giants’ Reign?”
The stock market correction continued on Thursday, with the Nasdaq falling below its 200-day moving average. Tech companies, including Meta Platforms and Google parent Alphabet, led the decline. Concerns about advertising impacted Meta Platforms, which also affected other big tech companies such as Nvidia and Arista Networks. Even Microsoft, which had reported strong earnings on Wednesday, saw its gains wiped out on Thursday. Amazon.com reported better-than-expected earnings and sales, but its Q4 revenue guidance fell slightly short. Other companies, including Chipotle Mexican Grill, Ford Motor, Intel, Dexcom, Deckers Outdoor, and Enphase Energy, also reported earnings on Thursday night. Intel, Dexcom, and Deckers were among the winners, while Ford and Enphase saw declines. Exxon Mobil and Chevron are set to report earnings on Friday. The stock market correction saw a sharp sell-off, with the Dow Jones falling 0.8%, the S&P 500 dropping 1.2%, and the Nasdaq plunging 1.8%. The small-cap Russell 2000 experienced some gains, climbing 0.3%, but still remains close to its worst levels since late 2020. Despite hopes that earnings season would revive the market, earnings have been a negative catalyst so far. The 10-year Treasury yield fell 11 basis points to 4.84%, reversing from an early high of 4.98% due to tame inflation data offsetting strong Q3 GDP growth. U.S. crude oil prices also slumped 2.55% to $83.21 a barrel. In terms of ETFs, growth ETFs such as the iShares Expanded Tech-Software Sector ETF and the VanEck Vectors Semiconductor ETF saw declines, while the SPDR S&P Metals & Mining ETF and SPDR S&P Homebuilders ETF experienced slight gains. Tech giants like Meta, Google, Apple, Nvidia, Amazon, and Microsoft all saw declines, with some stocks nearing their 200-day moving averages. Investors should remain patient during this market correction and wait for clear signs of market strength. It’s important to focus on stocks that are still holding key levels and have strong relative strength lines. Stay updated with the market direction and leading stocks and sectors by reading The Big Picture every day.
