S&P 500 Slides as Apple and Tesla Weigh

On Thursday, the S&P 500 saw a downturn, driven by losses in Apple and Tesla. Apple’s shares fell after reporting underwhelming iPhone sales, while Tesla faced pressure due to lower profit margins resulting from recent price cuts. In the UK, the FTSE 100 declined, with BP impacted by weaker oil trading results. Additionally, the dollar gained strength, while Brent crude oil moved slightly higher.

Equities

On Thursday, the FTSE 100 saw a decline of 0.2%, closing at 7,501. The index was dragged down primarily by losses in the oil and banking sectors.

BP fell by 1.8% following reports that its oil trading unit delivered lower-than-expected results. The company has been grappling with weaker refining margins, which offset gains in its gas trading division.

AstraZeneca also declined by 1.5% as concerns over drug pricing pressures in the US weighed on the stock, despite the company recently receiving positive data for one of its cancer treatments.

In the United States, Wall Street’s major indices all finished lower. The S&P 500 dropped 1.8%, while the Dow Jones Industrial Average lost 1.5%, and the Nasdaq Composite fell by 2.4%.

Technology stocks were hit hard, with Apple declining by 3% after it announced weaker-than-expected iPhone sales in its latest earnings report. Microsoft also shed 2.2% as investors reacted to concerns about slower growth in its cloud computing division.

Meanwhile, Amazon slipped by 2.7% due to fears of tightening consumer spending impacting its retail business. Tesla’s shares plummeted by 4% after the company reported a drop in its profit margins, as aggressive price cuts to boost sales ate into earnings.

This sell-off in the US markets was broad-based, affecting multiple sectors as concerns over rising bond yields and tighter monetary policy continued to loom. Energy stocks were not spared, with Chevron sliding 2.5% as the company warned of lower production levels in the coming quarter. Financial stocks, too, saw declines, with JPMorgan Chase down 1.6% amid worries about the economic outlook and its impact on lending activities.

Forex & Commodities

On Thursday, the US dollar rose against major global currencies, bolstered by strong US economic data that suggested a resilient economy. The British pound dropped by 0.5% against the dollar, reflecting concerns about the UK's economic outlook following mixed inflation data.

Gold prices showed volatility, initially rising due to safe-haven demand before settling at $2,459 per ounce as a stronger dollar and higher Treasury yields applied downward pressure. Brent crude oil prices edged higher to $73.60 per barrel, supported by tightening supply expectations despite broader economic concerns.

The dollar’s strength was driven by better-than-expected US retail sales data, which reinforced the notion that consumer spending remains robust despite higher interest rates. This added pressure on the Federal Reserve to keep rates elevated, pushing Treasury yields higher and consequently weighing on gold. The metal's safe-haven appeal was momentarily boosted by global economic uncertainties but later eroded as investors favoured the dollar and US bonds.

In energy markets, Brent crude oil prices maintained a slight upward trajectory, closing at $73.60 per barrel. The price movement was underpinned by expectations of tighter supplies, following recent production cuts by major oil-producing nations.