The S&P 500 Index closed down 0.01% on Friday, July 21, while the Dow Jones Industrials fell by 0.32% and the Nasdaq 100 decreased by 0.05%. Key movers included Netflix, which dropped over 5% after revising its full-year operating margin forecast below analyst expectations. Meanwhile, health insurance stocks also suffered significant losses; Molina Healthcare fell more than 10% after a downgrade.
US June housing starts increased by 4.6% month-over-month to 1.321 million, surpassing expectations of 1.300 million, while building permits rose unexpectedly by 0.2% to 1.397 million. The University of Michigan’s consumer sentiment index rose to a five-month high of 61.8, above the forecast of 61.5. Additionally, Fed Governor Christopher Waller indicated support for a potential interest rate cut in the upcoming FOMC meeting, which has contributed to falling bond yields.
Recent trade developments have impacted market sentiment, particularly President Trump’s planned tariff increases on imports from the EU and other regions effective August 1. Traders are currently pricing in only a 5% chance of a 25 basis point rate cut during the July FOMC meeting, with a 58% chance for the September meeting.
