US Stocks Decline Amid Fed Policy Challenges and Economic Data

Market Performance and Economic Data

• 📉 Stocks experienced a pullback, wiping out previous gains, largely influenced by recent economic data.
• 💡 The ISM data released this morning indicated that the macro environment continues to drive market movements.
• 📊 The Dow Jones Industrial Average closed down over 60 points, the S&P 500 fell fractionally below 6,300, and the Nasdaq saw a decline of 7/10 of 1%.
• 📈 The Russell 2000 was a relative bright spot, closing higher by 6/10 of 1%.

Treasury Yields and Fixed Income

• 📉 The 10-year Treasury yield remained at 4.20%, despite economic indicators suggesting it should be higher.
• ⚠️ Fixed income investors are finding little attractiveness in the current market, with some stating they are not interested in yields below 4%.

Key Company Earnings and Performance

• 💊 Amgen boosted its 2025 guidance after quarterly results beat estimates, driven by strong sales of older medicines.
• 📱 Skyworks, a supplier for smartphones, reported revenue and adjusted EPS beats, leading to a significant jump in after-hours trading.
• 🚗 Rivian reported a second-quarter loss per share and revenue beat, but vehicle deliveries fell short of expectations, causing shares to decline.
• 🚗 Lucid reported an adjusted loss per share and saw its shares drop further, despite a slight beat on EPS and a revised production outlook.
• 🍽️ Toast, the restaurant payment platform, reported a revenue beat and strong EBITDA, with modest gains in its share price.
• 💻 Super Micro Computer posted disappointing fourth-quarter results, including gross margin and EPS misses, leading to a significant drop in after-hours trading, despite raising its 2026 sales estimates.
• ☁️ Clavio saw its stock rise in after-hours trading following a revenue beat and an improved fiscal year outlook.
• 🏠 Open Door Technologies experienced a decline after announcing third-quarter revenue projections and a net loss, despite revenue beating estimates.
• 🌐 Arista Networks, a cloud computing company, beat on both revenue and adjusted EPS, with its shares moving higher.

Geopolitical and Policy Considerations

• ✈️ Oil prices sank as Russia reportedly considered an air truce with Ukraine.
• 🇺🇸 President Trump indicated that US tariffs on semiconductor and pharmaceutical imports would be announced soon, a move that could impact companies like Amgen.
• 🇨🇳 Advanced Micro Devices Inc. provided a stronger-than-expected sales forecast but warned of uncertainty regarding access to the China market.