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Stock Market News Today, 8/09/23 – Stocks Sink as Tech Sector Leads Decline
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Stock Market News Today, 8/09/23 – Stocks Sink as Tech Sector Leads Decline

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U.S. Futures are trading higher on Wednesday after the sharp decline in bank stocks yesterday following Moody’s downgrade. Elsewhere, China’s CPI and PPI figures for July fell for the first time in two years, stoking fears of deflation and dragging down Chinese stocks.

Last Updated 4:05 PM EST

Stock indices finished today’s trading session in the red as stocks lost all momentum heading into the close. Indeed, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 1.12%, 0.7%, and 0.54%, respectively.

The technology sector (XLK) was the session’s laggard, as it fell 1.3%. Conversely, the energy sector (XLE) was the session’s leader, with a gain of 1.22%.

Furthermore, the U.S. 10-Year Treasury yield decreased to 4.01%, whereas the Two-Year Treasury yield also increased, as it hovers around 4.8%. This brings the spread between them to -79 basis points.

Last updated: 2:50PM EST

Stocks are off their session lows at the time of writing as major indices rally toward the flatline. Indeed, the Dow Jones Industrial Average (DJIA) is slightly in the green as we approach the final hour of today’s trading.

Last updated: 11:30AM EST

Stocks are in the red so far in today’s trading session as investors await inflation data. Meanwhile, WTI crude oil is up as it hovers above $83 per barrel. Indeed, its recent uptrend has led to prices at the pump gaining upward momentum across the country.

Indeed, the national average for regular gas was last $3.825 per gallon, up from last week’s reading of $3.803. The highest prices can be found in California, where prices are substantially higher than the national average, at $5.08 per gallon. On the other hand, Mississippi is the state with the lowest gas prices, at $3.316 per gallon.

Last updated: 9:30AM EST

Stocks were mixed at open on Wednesday, with the Nasdaq 100 (NDX) down by 0.01% while the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) inched up by 0.03% and 0.05%, respectively, at 9:30 a.m., EST, August 9.

First published:4:18 AM EST

U.S. Futures are inching higher on Wednesday morning after the three major averages witnessed a huge sell-off in trading last night. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 0.31%, 0.23%, and 0.12%, respectively, at 4:00 a.m., EST, August 9.

Major U.S. banks took a tumble on Tuesday after Moody’s put their credit ratings under review for a potential downgrade. Adding further damage to banking stocks, the news is that several financial services firms have been fined $555 million for record-keeping lapses.

WTI crude oil is also continuing with its upward momentum, hovering over $83.15 per barrel as of the last check. The recent uptrend has led to prices at the pump gaining upward momentum across the country, especially in California, where prices are substantially higher than the national average at $5.07 per gallon.

Notably, the Biden Administration is considering imposing fresh bans on investments in Chinese tech companies. On Wednesday, the administration is expected to pass a ruling that will ban American private equity and venture capital firms from making direct investments in China’s semiconductor, quantum computing, and artificial intelligence sectors. The new rule comes in the wake of growing U.S.-China trade wars, wherein the White House is trying to curtail Beijing from developing cutting-edge military warfare.  

Turning to the earnings season, shares of Twilio (TWLO) gained in after-hours trading after surpassing both earnings and sales expectations. On the contrary, Upstart Holdings (UPST) stock took a double-digit nosedive in after-hours trading after the firm’s Q3 revenue forecast missed expectations. Also, Rivian (RIVN) fell in after-hours trading despite beating both top-and bottom-line estimates.

Moreover, Penn stock (PENN) soared over 20% during extended trading after the company inked a $2 billion deal with Disney’s ESPN to launch ESPN Bet, a sports betting business. Notable companies reporting today include Roblox (RBLX), Disney (DIS), Plug Power (PLUG), and Wynn Resorts (WYNN).

Elsewhere, European indices are trading in the green on Wednesday on the heels of a solid earnings season. The Italian government levied a new windfall tax on net interest income (NII), capped at 0.1% of a bank’s risk-weighted assets, dragging down banking stocks on Tuesday.  

Asia-Pacific Markets End Mixed on Wednesday

Asia-Pacific indices finished mixed on Wednesday following China’s deflationary concerns. China’s consumer price index (CPI) fell for the first time since 2021, stoking fears of deflation. July’s CPI fell 0.3% on an annualized basis, while the producer price index (PPI) fell 4.4% year-over-year. Meanwhile, core CPI (excluding food and gas) in July rose 0.8% from the year-ago period.

The news comes on the back of a weakening mainland trade balance in the mainland. Both China’s imports and exports in July declined drastically compared to the year-ago period. The reports flag the uncertainty in China’s economic recovery and the need for greater stimulus to revive the mainland.

Hong Kong’s Hang Seng index ended higher by 0.22%, while China’s Shanghai Composite and Shenzhen Component indices finished lower by 0.49% and 0.53%, respectively.

On the other hand, Japan’s Nikkei and Topix indices ended down by 0.53% and 0.40%, respectively.  

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