US Stocks Decline as S&P 500 Hits Longest Losing Streak in a Month

Market Performance and Investor Caution

• 📉 The S&P 500 is on track for its longest losing streak in a month, indicating a shift towards caution in the market after a period of record highs.
• 📊 Most stocks across major indices were in the red, with the Dow down 0.4%, the S&P 500 down 0.5%, and the NASDAQ Composite and 100 down by similar amounts.
• ⚠️ The Russell 2000 significantly underperformed, down 1% for the day.

Economic Data vs. Fed Bets

• 📈 Despite strong US GDP growth data, which showed the fastest pace in nearly two years, the figures did not significantly impact Federal Reserve rate cut expectations.
• 💰 Short-dated yields climbed, reflecting a market environment where valuation worries are overshadowing positive economic indicators.
• 🔍 Traders are closely watching for Friday's inflation report (core PCE price index) for further clarity on the Fed's next moves.

Key Company Performances and News

• 💡 Intel was a top gainer, up nearly 9%, following an upgrade and speculation about a potential stake from Apple.
• 🚀 Lithium Americas surged over 23% after the White House proposed taking equity in the company as part of loan renegotiations.
• 🤝 Synopsis also performed well, up about 4%, due to news of collaboration with Taiwan Semi on chip technology.
• 📉 CarMax was the worst performer, down 20%, reporting weaker-than-expected results and citing strain in the used car market.
• 🚗 Tesla fell 4.4%, the worst performer among the Mag 7, as European sales declined 22% last month.
• ⛏️ Freeport-McMoRan dropped 6.2% due to fallout from an accident at its Indonesian copper mine, leading to force majeure on contracted supplies.

Starbucks Turnaround Plan

• ☕ Starbucks announced plans to close 1% of its US and Canada stores and cut 900 jobs as part of a turnaround strategy.
• 📉 Investors reacted negatively, with the stock finishing down about 0.5% after being up earlier in the session.
• 🗣️ Analysts suggest the move is a step in the right direction, but questions remain about whether the scale of cuts is sufficient given the company's large store footprint and recent stock performance.