Strong corporate earnings boosted optimism around investors in the last two weeks of July, but U.S. stocks fell on Friday as shares of Amazon dropped after the company forecast lower sales growth.
“Overall earnings have been good. But Amazon … and some of last year’s winners are taking some of the air out of the market. This market has been driven by big tech, and when tech does well, the market seems to go right along with it, and when it doesn’t,” it falls,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.
Federal Reserve reported last week that it is still waiting for improvements before changing a monetary policy, and the stimulus program would remain in place until the labor market makes a full recovery. U.S. Federal Reserve Chairman Jerome Powell said that inflationary pressures are likely to be temporary and concluded that the central bank is still a ways away from considering raising interest rates.
The Federal Reserve’s ultra-loose monetary policy is good for risk-takers, and investors will continue to pay attention to the bank’s commentary looking for any clues. Data on Friday showed U.S. consumer spending rose more than expected in June but the Delta variant of the coronavirus represents an issue for the U.S. economy.
Activision Blizzard (NASDAQ: ATVI), Nvidia (Nasdaq: NVDA), and Twitter (NYSE: TWTR) continue to attract the interest of traders and investors; still, if the U.S. stock market enters a more significant correction phase, the share prices of these companies could be at lower levels.
Activision Blizzard is trading close to the $80 support level
Activision Blizzard shares have weakened from $99 below $82 since 14 June 2021, and the current
