US stocks are experiencing a retreat from recent record highs, while gold prices continue to decline. The S&P 500 dipped by 0.4%, remaining within 1% of its all-time peak established earlier this month. The Dow Jones Industrial Average fell 123 points, equating to a 0.3% loss, while the Nasdaq composite decreased by 0.9% as of 11:45 a.m. Eastern time.
Market Dynamics: Key Stocks Affected
Netflix notably pressured the market, reporting lower profits for the recent quarter than analyst predictions. Its stock dropped by 9.7% on Wednesday, despite a year-to-date gain of 39.3%, which exceeds the S&P 500’s growth. This decline highlights concerns over the pressure on companies to maintain solid profit growth.
- AT&T dropped 1.4% after reporting profits that aligned with analysts’ forecasts.
- Texas Instruments experienced a 5% decline due to profits falling short of expectations.
Winners Amidst the Decline
Conversely, some companies have seen positive performances. Intuitive Surgical surged by 13.9% following impressive profit results, while Boston Scientific rose by 4.4% after exceeding profit expectations.
Bank stocks remained relatively stable, supported by companies like Capital One Financial and Western Alliance Bancorp, which reported stronger-than-expected summer profits. This stability comes after recent warnings about potentially problematic loans in the banking sector.
Interestingly, Beyond Meat continued to attract attention among investors, rising by 31% on Wednesday, driven in part by Walmart’s announcement to increase product availability at over 2,000 stores. Earlier in the day, it had surged as much as 112% before settling back.
Gold Price Trends
The price of gold dropped by 1.3% to $4,056.90 per ounce, following a significant 5.3% decline the previous day. This downturn has triggered questions about gold’s rapid price increase, which is still up over 50% this year. Many investors had turned to gold due to anticipated interest rate cuts and inflation worries, but the recent criticisms suggest the price may have escalated too quickly.
International Market Reactions
Meanwhile, international stock markets showcased mixed results. In Europe and Asia:
- London’s FTSE 100 increased by 1% thanks to optimistic inflation reports.
- South Korea’s Kospi jumped by 1.6%.
- Conversely, Hong Kong’s index fell by 0.9%, and Paris saw a 0.7% decrease.
In the bond market, the yield on the 10-year Treasury note slipped to 3.96% from 3.98% late Tuesday.
