After a bruising first half for investors, the start of July isn’t promising any big breaks.
US stock futures were down in after-hours trading after the major indexes closed lower on Thursday, capping the S&P 500’s worst first half in more than 50 years. The S&P 500 fell 0.9%, the Dow Jones Industrial Average lost 0.8%, and the tech-filled Nasdaq Composite dropped 1.3% during the session, which concluded the second quarter.
As they begin July, investors are still stuck in a bear market. The same overarching issues, like tenacious inflation, rising interest rates, and battered consumer sentiment, continue to command markets’ attention—all amid growing discussion of the likelihood of a recession.
At 6:15 pm Eastern time, futures for the S&P 500, Dow Jones Industrial Average, and Nasdaq were all down 0.3%.
Midyear comparisons for the primary indexes are ugly. The S&P’s 20.6% first-half loss is its largest since 1970, when it shed 21% in the first half. The Dow’s 15.3% first-half drop is its worst since falling 23.2% to start 1962. For the Nasdaq and the small-cap benchmark
ussell 2000, their starts to 2022 have each been their worst on record. They have lost 29.5% and 23.9% this year, respectively. The Nasdaq’s 22.4% fall over the last three months also marks its most severe quarterly drop since the fourth quarter of 2008.
In after-hours trading Thursday,
G), up 4.3%;
), up 3.9%; and
(DHG), which also rose 3.9%, were all climbing higher.
) was down 2.6% after the memory-chip maker’s financial projections for its next quarter missed Wall Street expectations. Micron is estimating $7.2 billion in revenue for its fiscal quarter ending in August, which is $1.9 billion short of the anticipated projection.
Other after-hours laggards included
(R), down 4%;
), down 3.8%; and
), which lost 3.7%.
Investors will receive an updated manufacturing indicator on Friday morning that could be a leading indicator for the broader economy. The US manufacturing purchasing managers index (
) for June, which is built from a survey of executives compiled by the Institute for Supply Management, comes out at 10 am
According to 24 economists surveyed by The Wall Street Journal, the consensus estimate for the PMI is 54.3%, which would sit comfortably above the 50% threshold that separates growth and contraction in the sector. But the forecast of 54.3% would also mark the industry’s slowest rate of expansion since July 2020.
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