U.S. Stock Market Sees Decline: Nasdaq Drops Over 100 Points and HP Shares Plummet

U.S. stocks experienced a downturn as trading came to a close on Wednesday, marked by a substantial decline in the Nasdaq Composite, which fell by more than 100 points.

The Dow Jones Industrial Average slipped by 0.28%, settling at 44,734.33, while the Nasdaq saw a more significant decrease, dropping 0.66% to 19,048.75. Similarly, the S&P 500 index fell by 0.37%, finishing at 5,999.25.

Market Sector Movements

In sector performance, real estate stocks showed resilience, increasing by 0.9% on Tuesday. However, technology shares were less fortunate, declining by 1.4% throughout the trading day.

Key Economic Indicators

The U.S. core PCE price index, an essential measure of inflation, went up by 0.3% month-over-month in October, matching the previous month's pace and aligning with market expectations.

Stocks on the Rise

Several stocks gained momentum during trading. Urban Outfitters, Inc. (URBN) saw a notable increase in shares, rising by 19% to $47.68 after a strong third-quarter earnings report prompted Citigroup to upgrade the stock to a Buy rating.

Iris Energy Limited (IREN) also experienced a boost, with its shares surging 30% to $12.39 following the release of its first-quarter financial results, which led multiple analysts to raise their price targets for the stock.

Unusual Machines, Inc. (UMAC) shares skyrocketed by 74%, reaching $9.30 after the announcement of Donald Trump Jr. joining its advisory board.

Stocks Facing Declines

Conversely, several stocks fell sharply. Symbotic Inc. (SYM) saw its shares plummet by 38%, dropping to $23.02 after revising its first-quarter revenue forecasts downward.

Outlook Therapeutics, Inc. (OTLK) shares faced a steep decline as well, dropping 63% to $1.7999. This decline followed the announcement that the company would resubmit its biologics license application for ONS-5010 after revealing preliminary results from its Norse eight clinical trial.

Notably, HP Inc. (HPQ) shares tumbled 13%, closing at $34.21 after the company disclosed its fourth-quarter financial results and issued first-quarter adjusted EPS guidance that fell below analyst estimates.

Commodity Market Updates

In commodity markets, oil prices decreased by 0.7%, trading at $68.28, while gold saw a rise of 0.7%, reaching $2,638.70. Meanwhile, silver prices fell by 0.9% to $30.120, and copper prices rose by 0.7%, trading at $4.1460.

International Market Overview

Turning to European markets, shares largely closed lower, with the eurozone's STOXX 600 index slipping by 0.19%. Germany’s DAX experienced a 0.18% decline, and France's CAC 40 dipped by 0.72%. Conversely, London's FTSE 100 saw a modest increase of 0.20%.

The GfK Consumer Climate Indicator for Germany fell to a reading of -23.3, the lowest level recorded since May, indicating worsening consumer confidence.

Asian Market Trends

In the Asia-Pacific region, market trends were a mixed bag. Japan's Nikkei 225 fell by 0.80%, whereas Hong Kong's Hang Seng Index rose by 2.32%. China's Shanghai Composite Index climbed by 1.53%, and India's BSE Sensex saw a gain of 0.29%.

U.S. Economic Data

• The U.S. economy grew at an annualized rate of 2.8% in the third quarter, consistent with initial estimates, compared to 3% in the previous quarter.
• Initial jobless claims remained unchanged at 213,000 for the week ending November 23, slightly below market forecasts of 216,000.
• The goods trade deficit in the U.S. narrowed to $99.1 billion in October, a decrease from the revised figure of $108.7 billion from the previous month.
• Wholesale inventories in the U.S. edged up by 0.2% month-over-month in October, totaling $905 billion, a change from the previous month's decline.
• The Chicago Purchasing Managers Index (PMI) dropped to 40.2 in November, down from 41.6 in September, indicating weaker manufacturing activity.
• Crude oil inventories in the U.S. fell by 1.844 million barrels in the week ending November 22, surpassing predictions for a smaller decline of 1.1 million barrels.
• U.S. personal income climbed by 0.6% month-over-month to reach $24.96 trillion in October, with personal spending showing a 0.4% increase to an annualized rate of $20.1 trillion.
• Pending home sales in the U.S. rose by 2% month-over-month in October, following a revised 7.5% gain in September.
• The total number of active oil rigs in the U.S. dropped by two, totaling 477 rigs this week, as reported by Baker Hughes Inc.

Conclusion

In summary, the U.S. stock market faced challenges as major indices declined, particularly the Nasdaq. Despite some individual stocks making gains, companies like HP, amid disappointing financial results, struggled significantly. Investors will be keenly observing upcoming economic data and market trends in the coming weeks.

Stocks, Market, Economy