Wall Street is going back to cautious as strong labour market data and status-quo-reaffirming remarks from Fed’s Chair Jerome Powell push back the interest rate cut expectations. Nasdaq takes the largest hit (-0.8%), followed by S&P 500 (-0.2%) and Russell 2000 (-0.1%). Dow Jones is the only exception today (+0.5%), supported mainly by healthcare and materials sectors.
Today’s batch of macroeconomic data supports the Fed’s wait-and-see approach. Although the ISM report for manufacturing showed a slower-than-expected contraction of the sector, the price pressures persist. This, compared with stronger hiring appetite (as indicated by the stronger-than-expected JOLTS report), weighs on recently dovish signals from Fed representatives, simultaneously fueling yields on US treasuries.
Volatility in DJIA sectors. Source: Bloomberg Finance LP
US100 (H1)
Nasdaq futures lost steam after closing the quarter at new all-time highs. The contract has now fallen well below its 24-hour exponential moving average, with buyers failing to hold the support level around 22,760. Tesla led the decline, dropping 6% and becoming the biggest drag on the index. Key semiconductor stocks also weighed heavily on performance, with Nvidia down 2.9%, Broadcom falling 3%, and AMD sliding 3.6%.
Source: xStation5
Company news:
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AMC shares fell 7.7% after announcing a debt restructuring deal with key creditors. The agreement includes $223 million in new financing, a $143 million debt-for-equity swap, and potential total equitization of up to $337 million. It also settles litigation over 2029 notes and helps refinance debt maturing in 2026, easing near-term financial pressure.
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Insulet, Dexcom, and other diabetes device makers fell after U.S. regulators proposed shifting to a monthly rental payment model for insulin pumps and CGM systems, replacing the current rent-to-own structure. The CMS also introduced a competitive bidding plan. Analysts see limited immediate financial risk but expect increased price pressure and competitive switching, especially for Tandem and Beta Bionics.
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Tesla shares are down 6% as tensions reignited between Donald Trump and Elon Musk. Trump threatened to revoke subsidies for Musk’s companies and hinted at reviewing his immigration status, after Musk criticized the president’s tax bill. The renewed feud follows GOP plans to phase out the $7,500 EV tax credit, a key benefit for Tesla.
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