Tech stocks lead losses in financial markets
Wall Street stocks closed lower on Thursday, weighed down by falling technology stocks. The S&P 500 fell 0.6%, the Dow Jones Industrial Average gave up 0.9%, and the Nasdaq Composite dipped 1.1%. In individual stocks, Salesforce shares plunged nearly 20% to see its biggest one-day drop in nearly 20 years in a reaction to the report that showed a quarterly revenue miss. The company also issued a soft annual sales outlook. For the week so far, the S&P 500 is down 1.3%, the Dow is down 2.5%, and the Nasdaq sheds 1.1%.
In Asia, investors failed to shrug off the decline on Wall Street to close mixed on Friday. The Shanghai Composite index gave up 0.16% after early gains. The index was slightly pressured by a survey that showed the nation’s manufacturing activity unexpectedly fell in May. Hong Kong’s Hang Seng index fell 0.78%, while Australia’s S&P/ASX 200 rose nearly 1%. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.20%.
European equities were little changed at the open today, with US stock index futures slightly lower in early pre-market deals. The regional Stoxx 600 index was down 0.05% in early deals, with sectors trading in mixed territory. Now, investors look ahead to a key US inflation report. The PCE Index, the US Federal Reserve’s chosen inflation gauge, is projected to remain at 2.7%, while the more significant core figure is estimated to remain at 2.8%.
Meanwhile, the US dollar struggles for direction on Friday after yesterday’s sell-off. The USD index slipped from mid-May highs around 105.20 as the US GDP was revised lower. The greenback derived support from the 104.60 area to settle around 104.75 ahead of a PCE report that will set fresh direction for the currency. Should the figures come in lower than expected, the dollar may see a deeper retreat to turn negative on the weekly charts.
