On Friday, July 20, the S&P 500 Index closed down 1.01%, while the Dow Jones Industrial Average lost 0.77%, and the Nasdaq 100 fell 1.49%. In pre-market activity, September E-mini S&P futures decreased by 1.02%, and September E-mini Nasdaq futures dropped 1.51%. Chipmakers were heavily impacted by concerns over declining valuations, with major indices reflecting a global selloff that began in Asia, where China’s Shanghai Composite fell 3% and Japan’s Nikkei 225 slid 4%.
U.S. housing news showed mixed results, with June housing starts rising 19% month-over-month to 1.427 million, surpassing expectations of 1.310 million, while building permits fell 3% to 1.367 million, below the forecast of 1.403 million. The University of Michigan’s July consumer sentiment index rose to 54.4 from June’s 49.5, exceeding expectations of 51.0, although inflation expectations also eased slightly to 4.2% from 4.6%.
Geopolitical tensions escalated as WTI crude oil surged over 4% amid ongoing conflict with Iran, which retaliated against U.S. bases in the region, causing concerns over crude supplies. A recent report indicated that oil flows through the Strait of Hormuz had decreased significantly, from 8.5 million barrels per day to 3.9 million barrels per day due to the tensions. Corporate insider selling also contributed to market worries, with executive sales totaling $77.6 billion in the first half of the year, the second highest in over 20 years.
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