Fed Decision Looms, Major Indices Dip

Key Takeaway

• Major indices, including the S&P 500 (-0.4%), Nasdaq 100 (-0.2%), and Dow Jones (-0.7%), are down ahead of the Federal Reserve decision and European political uncertainties.
• Notable stock movements include Apple (AAPL) up 3.4% on new AI features, Affirm (AFRM) up 4.9% due to Apple Pay integration, and CoreCivic (CXW) down 18% after suspending its financial guidance for 2024.

Pre-market Top Moves

As of 10:21 a.m. in New York, the major indices are experiencing declines ahead of the Federal Reserve decision and amid political uncertainties in Europe, prompting traders to seek safer investments.

• S&P 500 Index: Down 0.4%, reflecting cautious sentiment ahead of the Fed's decision.
• Nasdaq 100: Falls 0.2%, indicating pressure on technology stocks.
• Dow Jones Industrial Average: Drops 0.7%, showing broader market weakness.
• MSCI World Index: Loses 0.5%, mirroring global market concerns.

Tech Sector Highlights

Apple (AAPL) shares rose 3.4% after the company introduced its long-awaited new artificial intelligence features, signaling strong investor confidence in its innovation pipeline. Affirm (AFRM) also saw a significant rise of 4.9% following the announcement that its payment products will be available to Apple Pay users in the US later this year.

Energy and Utilities

Array Technologies (ARRY) shares slipped 7.5% after the solar tracking equipment company announced that CFO Kurt Wood will step down at the end of the second quarter to pursue other business interests. This move has raised concerns about the company's leadership stability.

Consumer Goods

Calavo Growers (CVGW) shares surged 12% after the distributor of avocados and other produce posted second-quarter profit and sales that topped estimates, indicating strong operational performance. On Holding (ONON) shares jumped 1.9% after being initiated with an outperform recommendation at Bernstein, which highlighted the company's promising running business.

Real Estate and Infrastructure

Crown Castle (CCI) shares gained 0.9% after announcing operational changes, which investors perceive as a positive step towards improving efficiency and profitability.

Notable Gains and Losses

CoreCivic (CXW) shares tumbled 18% after the operator of corrections and detention centers suspended its financial guidance for 2024, causing significant investor concern. Yext Inc. (YEXT) shares fell 6% after the digital-media technology company provided a weaker-than-expected second-quarter outlook and cut its full-year revenue forecast.

Key Movers & Takeaway

The market is reacting to a mix of corporate announcements and broader economic uncertainties. Apple and Affirm's gains highlight the market's positive reception to tech innovations and strategic partnerships. Conversely, CoreCivic's significant drop underscores the impact of suspended financial guidance on investor sentiment. The overall cautious market movement ahead of the Federal Reserve decision suggests that investors are bracing for potential volatility.

Key Movers Table by Market Cap

LargeCap Movers (>$20B)

Mid-Cap Movers ($5B-$20B)

SmallCap Movers ($50M-$5B)

Top Overbought/Oversold by 14-Day RSI

Overbought Stocks

Oversold Stocks

The market's cautious stance ahead of the Federal Reserve decision and political uncertainties in Europe is evident in the broader indices' declines. However, individual stock movements driven by corporate announcements provide opportunities for investors to capitalize on specific trends.