Stock Market Update: Futures Rise Following Biden’s Withdrawal Decision – 7/22/24

Stock Market Update: On Monday morning, U.S. futures showed an upward trend as investors responded to a significant development in the U.S. political landscape. President Joe Biden announced his withdrawal from the 2024 presidential race and endorsed Vice President Kamala Harris as the Democratic nominee. As of 4:30 a.m. EST on July 22, futures for major indices were trading higher: the Nasdaq 100 (NDX) was up by approximately 0.52%, the S&P 500 (SPX) gained around 0.32%, and the Dow Jones Industrial Average (DJIA) increased by about 0.14%.

Weekly Market Recap: S&P 500 and Nasdaq Underperform

In the previous week, the S&P 500 and Nasdaq Composite indices experienced their steepest weekly declines since April. The S&P 500 fell by 2%, while the Nasdaq Composite saw a 3.7% drop, as investors shifted their focus from large-cap to small-cap stocks. In contrast, the Dow Jones Industrial Average managed to post a modest gain of 0.7%.

Upcoming Economic Data and Earnings Reports

Looking ahead, several key economic indicators are scheduled for release this week. On Wednesday, the preliminary readings for the S&P Global Manufacturing Purchasing Managers’ Index (PMI) and Services PMI for July will be published. Thursday will see the advance estimate for Q2 GDP growth, providing insights into the U.S. economic performance. Additionally, June’s Core Personal Consumption Expenditures (PCE) report, which is crucial for understanding inflation trends, is expected on Friday.

The earnings season continues to drive market attention, with several high-profile companies set to report their financial results this week. Notable reports include those from Tesla (TSLA -4.02%), ServiceNow (NOW +1.68%), Alphabet (GOOGL -0.02%), General Motors (GM -2.72%), Ford (F -3.92%), General Electric (GE +0.21%), Colgate-Palmolive (CL), and International Business Machines (IBM -1.06%). Investors will also be keenly awaiting earnings reports from Verizon (VZ -1.07%) and Cleveland-Cliffs (CLF -2.51%) later today.

Treasury Yields and Oil Prices

At the time of writing, the U.S. 10-year Treasury yield was lower, hovering around 4.22%. Meanwhile, WTI crude oil futures were trending upwards, nearing $80.40 per barrel. In European markets, trading opened higher as investors continued to assess the implications of the U.S. political developments.

Asia-Pacific Markets Close Lower

In the Asia-Pacific region, most indices ended Monday’s trading session in negative territory following an unexpected reduction in key lending rates by China’s central bank. The Shanghai Composite and Shenzhen Component indices fell by 0.61% and 0.38%, respectively. Japan’s Nikkei and Topix indices both closed down by 1.16%. However, Hong Kong’s Hang Seng index saw a gain of 1.25%.

Today’s market movements reflect the immediate impact of President Biden’s withdrawal from the presidential race on investor sentiment. As key economic data and earnings reports loom, market participants will be watching closely for further developments. The varied performance in global markets highlights the ongoing adjustments to economic and political changes.

Frequently Asked Questions (FAQ) – July 22, 2024 Stock Market Update

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