In the technology sector, Micron’s shares dropped over 5% despite meeting fourth-quarter revenue expectations. This shows that simply meeting forecasts may not be enough to satisfy investors in the current market. Levi Strauss also experienced a significant 15% decline in stock value after reporting disappointing quarterly revenue, highlighting the challenges faced by consumer-focused companies.
The Federal Reserve’s announcement that major U.S. banks could withstand a severe recession had mixed effects on financial stocks. While Goldman Sachs saw a 1.6% decrease in shares, JPMorgan Chase remained relatively stable. This indicates that investors are assessing banks individually based on their strengths and weaknesses.
Investors are eagerly awaiting Friday’s personal consumption expenditures (PCE) price index, a key inflation indicator. The market is hoping for signs of decreasing inflation that could potentially support Federal Reserve rate cuts later in the year.
Thursday’s economic calendar is filled with important releases, including an expected increase in weekly jobless claims to 240,000. Durable goods orders are projected to fall by 0.6%, in contrast to the previous month’s 0.6% increase. Pending home sales are also anticipated to rise by 1%, bouncing back from a 7.7% decline in April.
These data points will offer valuable insights into the health of the labor market, the strength of the manufacturing sector, and trends in the housing market.