World Markets today: US stocks trade flat, Intel down 6-week low, slumps 12%

As of 9:49 a.m. ET, the Dow Jones Industrial Average demonstrated a gain of 36.03 points, equivalent to a 0.09% increase, reaching 38,085.16. Meanwhile, the S&P 500 showed a marginal decline of 3.32 points, representing a 0.07% decrease, with a current value of 4,890.84. Additionally, the Nasdaq Composite experienced a decrease of 32.89 points, reflecting a 0.21% dip, and is currently standing at 15,477.61.

The report from the U.S. Commerce Department revealed that the personal consumption expenditure index, which is the Federal Reserve’s favored metric for gauging inflation, experienced a moderate increase in December. This consistent moderation has resulted in the annual inflation rate staying below 3% for the third consecutive month. This trend may provide the central bank with the opportunity to contemplate initiating interest rate cuts within the year.

Exerting pressure on the technology-centric Nasdaq, Intel witnessed a significant decline of 12.1%, reaching a six-week low. This downturn was prompted by the company’s projection that its first-quarter revenue might fall short of estimates by more than $2 billion. Consequently, this led to declines ranging from 1.6% to 2.2% in other semiconductor stocks, such as Advanced Micro Devices, Qualcomm, and Micron Technology.

In the realm of stock market movements, American Express surged by 7.1%, propelled by the credit card company’s optimistic annual profit forecast. Conversely, its counterpart Visa (V.N) experienced a 2.1% decline, attributed to the largest payments processor’s subdued revenue growth projection for the current quarter, which overshadowed an otherwise positive earnings outcome.

According to data from LSEG, a notable 78.2% of the S&P 500 companies that have reported their earnings thus far have exceeded expectations. This stands out in comparison to the long-term average beat rate of 67%.

On the New York Stock Exchange (NYSE), advancing issues outweighed decliners with a ratio of 2.25-to-1, while on the Nasdaq, the ratio was 1.75-to-1. The S&P index achieved 26 new 52-week highs with no new lows, while the Nasdaq saw 48 new highs and 28 new lows. These statistics underscore the dynamic and positive trends observed in the market.

On Thursday, the Dow Jones Industrial Average was up 81.36 points, or 0.22 per cent, at 37,887.75, the S&P 500 was up 15.31 points, or 0.31 per cent, at 4,883.86, and the Nasdaq Composite was up 49.29 points, or 0.32 per cent, at 15,531.21.

Whereas, the pan-European benchmark STOXX 600 was up 1.11% after the European Central Bank (ECB) held interest rates steady.

Among Asian countries, China’s Shanghai Composite was trading 1.90 percent down, meanwhile, Hong Kong’s Hang Seng index was down 1.60 percent.

Oil prices remained stable on Friday but were on track for a second consecutive weekly increase, propelled by encouraging U.S. economic growth and indications of Chinese stimulus that heightened demand sentiment. Additionally, concerns about the supply in the Middle East contributed further support to the market.

Brent crude futures experienced a marginal decline of 9 cents, reaching $82.34 per barrel by 11:13 a.m. ET (16:13 GMT). Despite this slight dip, it’s noteworthy that earlier in the day, they achieved their highest price for the year, reaching an intra-day peak of $82.80.

The stability of gold prices persisted on Friday, with investors redirecting their focus to the upcoming U.S. Federal Reserve policy meeting scheduled for next week in anticipation of gaining further insights into the interest rate outlook.

As of 9:58 a.m. ET (1458 GMT), spot gold exhibited minimal movement, holding at $2,020.19 per ounce, reflecting a marginal 0.5% decline for the week. Concurrently, U.S. gold futures experienced a slight uptick of 0.1%, reaching $2,020.30.

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Published: 26 Jan 2024, 10:26 PM IST