Day Traders Diary
The major averages had their worst day in months after the Federal Reserve Chair Jerome Powell dampened hopes for further rate cuts later this year. Fed Chairman Powell says rate move was a 'midcycle adjustment,' hinting more cuts were not a guarantee. The Dow Jones Industrial Average closed 330 points lower, or 1.2% after falling as much as 478 points at one point. The S&P 500 and Nasdaq Composite dropped 1.1% and 1.2%, respectively. The Dow logged in its biggest one-day decline since May 31 along with the S&P 500. The Nasdaq had it biggest one-day drop since late June.
All 11 S&P 500 sectors finished lower, including noticeable declines in the consumer staples down 2.0%, materials down 1.5% and information technology down 1.5%. The Philadelphia Semiconductor Index dropped 3.5%.
On the earnings front, Apple rose 2% following strong quarterly results and better-than-expected revenue guidance for the fourth quarter. Electronic Arts is jumped 4% following earnings. Advanced Micro Devices dropped 10% after guiding Q3 revenue below consensus and cutting its full-year revenue outlook.
Nearly 60% of S&P 500 companies have reported earnings so far. Of those companies, 76% have posted stronger-than-forecast quarterly profits.
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