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As of Thursday's stock market close, the Dow Jones Index (US30) added 0.47%, while the S&P 500 Index (US500) decreased by 0.68%. The Nasdaq Technology Index (US100) fell sharply yesterday by 2.05%. The Dow Jones Index (US30) has posted nine straight days of gains, the longest streak of gains since 2017.

Shares of Tesla (TSLA) fell more than 9% at the open yesterday and were on track for the biggest one-day percentage drop after the electric car maker reported second-quarter gross profit fell to a four-year low and CEO Elon Musk hinted at further price cuts. Netflix (NFLX) was down by 8% from the open after the streaming video company's quarterly revenue missed estimates. Analysts at Barclays raised their price target on shares of Nvidia (NVDA) by $100 to $600 per share ahead of its second-quarter earnings report. Barclays joined HSBC and Rosenblatt, who also raised their price targets. Analysts believe Nvidia could deliver another strong earnings report above expectations amid GenAI demand.

The Labor Department said initial claims for state unemployment benefits fell 9,000 to 228,000. Economists had forecast 242,000 claims in the past week. That increased the likelihood of a more hawkish stance from the Fed next week. On Thursday, the Conference Board said its leading economic index, a gauge that anticipates future economic activity, fell by 0.7% in June to 106.1. Other data on Thursday showed US secondary home sales fell to a five-month low in June.

Equity markets in Europe traded higher on Thursday. Germany's DAX (DE40) increased by 0.59%, France's CAC 40 (FR40) added 0.79% yesterday, Spain's IBEX 35 (ES35) closed positive by 0.72%, and the UK's FTSE 100 (UK100) closed up by 0.76%.

According to the survey, the European Central Bank will raise interest rates by 25 basis points on July 27. But this decision is already factored into the price, so the main focus of attention will be on the ECB's future plans. The hawkish attitude of officials will hint at another rate hike in the fall.

Asian markets were mostly down yesterday. Japan's Nikkei 225 (JP225) fell by 1.23%, China's FTSE China A50 (CHA50) fell by 0.25%, Hong Kong's Hang Seng (HK50) lost 0.13%, while Australia's S&P/ASX 200 (AU200) ended the day positive by 0.02%.

Technology chip giant TSMC reported lower profits and provided a gloomy outlook. China's National Development and Reform Commission, China's economic planner, unveiled new measures aimed at boosting spending in the auto and consumer electronics sectors. Fund managers have become less optimistic about China's economic recovery this year amid weak performance and limited policy support. Economists at Bank of America (BAC) warned that local stocks could test 11-year lows as the post-COVID economic recovery falters.

• S&P 500 (F)(US500) 4,534.87 −30.85 (−0.68%)
• Dow Jones (US30) 35,225.18 +163.97 (+0.47%)
• DAX (DE40)  16,204.22 +95.29 (+0.59%)
• FTSE 100 (UK100) 7,646.05 +57.85 (0.76%)
• USD Index  100.77 +0.49 (+0.49%)
   

Important events for today:

• Japan National Core Consumer Price Index at 02:30 (GMT+3);
• UK Retail Sales (m/m) at 09:00 (GMT+3);
• Canada Retail Sales (m/m) at 15:30 (GMT+3).

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