Economic data weighed on U.S. stocks, with the Nasdaq dropping over 2%, and Nvidia plummeting further, while the VIX fear index reached its highest level since April. The 10-year U.S. Treasury yield fell below 4% for the first time since February. European stocks and oil prices declined, while the U.S. dollar and Swiss franc strengthened.
The Bank of England cut interest rates for the first time in four years, lowering it by 25 basis points and indicating a "cautious" approach to future actions. Analysts described this as a hawkish cut.
In July, U.S. manufacturing activity experienced its largest contraction in eight months, with employment indicators showing a significant decline. Last week, initial jobless claims in the U.S. reached 249,000, the highest in a year, while continuing claims for unemployment benefits hit a peak not seen since November 2021. Challenger reported a 9% year-over-year increase in U.S. job cuts in July, with hiring plans falling to their lowest level since 2012.
Reports state that Hamas has indefinitely frozen negotiations regarding a ceasefire agreement.
Apple's iPhone revenue fell in the third quarter, with the Greater China region being the only market to decline, while iPad and service segments performed strongly. Cook expressed continued long-term confidence in the Chinese market, with overall after-hours stock movements remaining stable.
Amazon's Q3 guidance fell short of expectations, with heightened AI investment pressures leading to concerns over cloud demand, causing the stock to drop more than 6% after hours.
Intel faced significant challenges as Q2 revenue unexpectedly declined, resulting in plans to cut over 15% of its workforce and suspend dividends, leading to a drop of over 20% in after-hours trading.
In July, China's electric vehicle delivery report showed mixed results: half experienced a month-over-month decline, while Zeekr remained stagnant compared to BYD, Cyrus saw a year-over-year increase of over 500%, and Li Auto achieved over 50,000 deliveries in a single month.