Market Turmoil: Oil Prices and Weak Earnings Drag Down US Markets
US markets faced a turbulent session with widespread declines due to higher bond yields and weak earnings reports. The tech sector showed some respite, but uncertainty surrounding the Strait of Hormuz continues to impact oil prices and related stocks.
American stock markets experienced a volatile session on Thursday (6), with the Dow Jones, S&P 500, and Nasdaq closing in the red. The decline was primarily driven by increased Treasury bond yields, which pressure demand for riskier assets. Weak quarterly earnings from technology companies, notably Sandisk, AppLovin, and Western Digital, also contributed to the downturn. However, the tech sector showed some relief as 'big techs' recovered partially after a challenging first half of the year. The situation in the Strait of Hormuz also garnered investor attention, with mixed perceptions on the associated oil supply risks leading to significant price fluctuations. Additionally, investors are preparing for next week's employment report from the US, which could further influence Federal Reserve decisions regarding future monetary policy.
Source: Valor Econômico