The S&P 500 rose to five-month high price levels on Tuesday and clocked the fourth consecutive daily gain. However, the S&P 500 opened lower on July 11 and declined as the day progressed. On Wednesday, ten out of 11 major S&P 500 sectors closed the day lower. Weakness in the energy, materials, and industrials sectors weighed on the market. However, strength in the utilities sector limited the market’s loss.
US markets declined on Wednesday as US-China trade war concerns intensified. As a retaliatory move to the US imposing import tariffs on $34 billion worth of Chinese goods, China announced tariffs of the same value on US imports. In response, the US plans to impose 10% import tariffs on $200 billion worth of Chinese goods. The new tariffs would take place following a two-month review process. The public hearing on the proposed tariffs is scheduled to take place on August 20–23.
Trade war concerns returned and weighed on US markets. The SPDR S&P 500 ETF (SPY) fell 0.73% to $276.86 on July 11.
The CBOE Volatility Index (or VIX) measures uncertainty in the market. The index rose 7.83% to 13.63 on July 11. The index is measured on a scale of one to 100 with 20 as the historical average. The VIX is also called the “fear index.” Usually, the index has an inverse relationship with stocks and rises when the S&P 500 falls.
NASDAQ and Dow
After gaining for four consecutive trading days, the NASDAQ Composite Index (QQQ) lost strength on Wednesday and declined. Increased concerns about US-China trade relations weighed on the NASDAQ Composite Index and the Dow Jones Industrial Average (DIA). On July 11, the NASDAQ Composite Index declined 0.55% and closed the day at 7,716.61. The Dow Jones Industrial Average declined 0.88% to 24,700.45.
Next, we’ll discuss the S&P 500’s top gainers on July 11.
The US Dollar Index opened stronger on Thursday and was trading with strength at ten-day high price levels in the early hours.
Cleveland-Cliffs (CLF) is expected to report its first-quarter earnings results on April 25.
While the overall cannabis sector experienced weakness on April 23, some stocks managed to gain some positive momentum in the first half of the day.
After being listed on the NASDAQ (QQQ) on March 29, Lyft (LYFT) stock has traded on a negative note so far.
Coca-Cola (KO) impressed investors with better-than-expected revenue and earnings for the first quarter.
Microsoft (MSFT) announced this month that it had acquired a San Diego startup called Express Logic for an undisclosed amount.
Spirit Airlines is scheduled to report its first-quarter results on April 25. The airline has an impressive record of beating earnings estimates.