Overview
The U.S. stock market closed lower today due to disappointing economic indicators and President Trump's remarks about possible tariffs, which dampened investor confidence. The S&P 500 lost its upward momentum, with semiconductor stocks leading the decline, dropping over 2%.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
A Major News Story
Despite positive revenue forecasts, AMD warned of political uncertainties in China following its earnings announcement. Super Micro Computer missed market expectations, resulting in a sharp drop in its stock. The 50.1 reading of the ISM Services PMI disappointed the market, signaling stagnation. Concerns about stagflation grew as companies reduced employment due to weak demand and rising costs, despite rising price indices. In the bond market, short-term bonds weakened as demand for a $580 billion 3-year bond auction was weak.
Tomorrow's Economic Indicators
| Time | Indicator |
|---|---|
| 8:00 PM | U.S. MBA Mortgage Applications |
| 10:30 PM | U.S. EIA Crude Oil Inventories |
| 2:00 AM | U.S. 10-Year Bond Auction |
| 3:00 AM | Fed's Collins Speech |
| 3:50 AM | Fed's Daly Speech |
General Opinion
The market is reacting sensitively to President Trump's tariff policy and the drop in the ISM Services PMI. If uncertainties persist, market volatility is likely to continue. Analysts believe that future economic indicators and Federal Reserve policy decisions will have a significant impact on the market. In the current environment, some experts suggest that an interest rate cut may be reasonable given the cooling employment situation and persistent inflation.
