Virgin Galactic’s Branson flew to space, but the stock of Virgin Galactic (SPCE) dropped. Why?
US equities slip
On Wednesday, American equities generally declined because market participants dumped high-surge names, including FAANG and technology equities, with soaring Treasury gains as well as trade-related fears affecting their risk appetite.
As a matter of fact, the S&P 500 and the Dow Jones Industrial Average slipped about 1.5%. Besides this, the Nasdaq dived 2%, thus drifting away from its 7.1% jump.
The rebound on Wall Street was led by technology equities that sank by 2.33% as well as the trade-sensitive industrial shares, which went down by 2.22%.
Along with tech equities, Amazon, Apple, Alphabet, Facebook and Netflix have led the market soar.
The Dow dipped by 1.5%, the S&P lost 1.94%, while the Nasdaq decreased by 2.32%.
Besides this, the Russell 2000 index declined by 1.18%.
As for the CBOE Volatility Index, it managed to gain 3.18%, thus demonstrating its highest value since June 25.
The top performers in the sea of red were represented by defensive utilities as well as consumer staples.
The weakness in tech sector was led by semiconductor companies right after Swiss vacuum valve manufacturer VAT Group told that demand from chip equipment producers receded.
The Philadelphia Semiconductor index headed south by 2.64%. Moreover, Intel sank 2%, while Nvidia inched down by 4.7%.
Financial analysts find it a good storm for the tech sector, with the tariff clash with China as well as weaker demand for processors.
Luxury equities appeared to be another casualty of fears of decelerating China demand, provoked by LVMH's outcomes. Jeweler Tiffany, Tapestry and Michael Kors went down 4.9%-7.2%.
Furthermore, Sears Holdings dived by 33.3%.
On the NYSE, slumping issues outclassed advancers for a 3.42-to-1 ratio as well as a 2.46-to-1 ratio on the Nasdaq.
Besides this, the S&P index hit 12 fresh 52-week maximums and also 39 fresh dips, while the Nasdaq boasted up to 9 fresh peaks as well as 167 new dives.
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!