US, European markets respond to sectoral movements, economic signals


(MENAFN) In the United States, stock markets continued their upward trajectory to new record highs, with the S&P 500 and nasdaq Composite indices poised to build on their recent gains. The S&P 500 climbed 13.75 points, or 0.24 percent, while the Nasdaq Composite advanced 102.75 points, or 0.5 percent. This surge was supported by strong performances in semiconductor and technology stocks, reflecting investor optimism fueled by easing inflationary pressures and signs of slowing economic growth. Many investors anticipate that these conditions could prompt the Federal Reserve to initiate monetary policy easing soon. However, some market analysts caution about the potential for a market correction, advising investors to diversify their portfolios to mitigate risks.

Meanwhile, in Europe, stock markets faced varied fortunes. The pan-European STOXX 600 index declined by 0.3 percent during trading sessions, influenced by losses in energy stocks amid lower oil prices. Mining companies, on the other hand, saw gains of 0.5 percent, buoyed by a slight uptick in copper prices. Indivior, a pharmaceutical company, experienced significant downturns as its shares plummeted to their lowest levels in nearly three years following a profit forecast reduction. The company announced it would cease sales of its schizophrenia drug Perceris and implement job cuts affecting approximately 130 positions. This contributed to a 27.7 percent drop in its stock value.

Other notable individual stock movements included Dassault Systemes, a French software company, which saw its shares decrease by 3.7 percent after revising down its full-year profit outlook. The adjustment was attributed to cautious spending behaviors among its clients and delayed business deals. BP, the energy giant, also faced a decline of 3.3 percent after issuing a forecast indicating lower refining margins and weak oil trading, which are expected to impact its second-quarter earnings. These dynamics underscore the diverse challenges and opportunities influencing global markets as investors navigate sector-specific developments and broader economic signals. 

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