FirstFT: Tech sell-off hits US inventory market

Good morning. At the moment we’re protecting:

• A ‘new phase’ within the Center East

• Evan Gershkovich launched from Russia

• Can athletics can win followers outdoors the Olympics?

We begin within the US the place Wall Road shares declined dramatically and Treasury bonds rallied as weak financial information and a slowdown evident in company earnings spurred fears a few decelerating US economic system.

The tech-heavy Nasdaq Composite closed down 2.3 per cent, having slid greater than 3 per cent earlier. Each Magnificent Seven inventory besides Meta ended decrease.

The strikes observe modest outlooks from chip designers Qualcomm and Arm earlier this week, whilst their income principally met consensus expectations.

“The bar has been set so high for these companies that it’s almost impossible for them to jump over it,” mentioned Steve Sosnick, chief strategist at Interactive Brokers. “If you’re good, but your price is spectacular, that’s a disappointment.” Meet up with our markets-wrap.

The most recent from Massive Tech:

Right here’s what else I’m maintaining tabs on immediately:

• South Korea inflation: July shopper worth index inflation charge information shall be launched immediately.

• Company outcomes: Japan’s Nintendo experiences earnings and Uniqlo proprietor Quick Retailing experiences July gross sales.

• Edinburgh Competition Fringe: The internationally acclaimed arts pageant that includes theatre, cabaret, comedy and music reveals, begins within the Scottish capital immediately.

5 extra prime tales

1. Hizbollah chief Hassan Nasrallah mentioned the battle between his militant group and Israel had “entered a new phase” with the killing of a senior commander in Beirut, including that Israel had breached limits and will anticipate a “certain” response. Learn extra from Nasrallah’s remarks, given as diplomats held pressing talks to keep away from all-out battle.

2. Russia has launched Wall Road Journal reporter Evan Gershkovich as a part of the most important prisoner swap of its variety because the chilly battle. The trade in Ankara, which concerned 26 prisoners and 7 nations, was the fruits of months of painstaking diplomacy. Right here’s the total story.

3. Nissan and Honda will intention to roll out a brand new electrical car earlier than the top of the last decade as the 2 Japanese carmakers outlined a sweeping alliance to compete in opposition to Tesla and Chinese language rivals.

4. The UK Critical Fraud Workplace charged Glencore’s ex-head of oil and 4 different former executives with conspiring to make corrupt funds after a long-running investigation into allegations of bribery by the UK-listed commodity dealer. Study concerning the investigation.

5. Shares in Toyota, Panasonic and Japan’s greatest banks have been among the many greatest victims of an enormous rout of Tokyo shares yesterday, as traders absorbed an sudden rate of interest improve by the Financial institution of Japan and a renewed surge within the yen. Extra on the influence of the BoJ charge improve.

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The Massive Learn

Athletics has formally begun on the Paris Olympics. Storied athletes, from Jamaica’s Usain Bolt and Shelly-Ann Fraser-Pryce (pictured), to the US’s Allyson Felix, have given performances which have redefined the bounds of human achievement over time. However most individuals pay little consideration to the game when the Video games are over. Examine the initiatives making an attempt to vary that.

We’re additionally studying and watching . . . 

Chart of the day

Commodities from copper to corn have been tumbling as plentiful provides and flagging Chinese language demand immediate fund managers to chop round $41bn of bullish bets on pure assets. In the meantime, issues about slowing Chinese language demand are already taking part in out in copper, a bellwether of the worldwide economic system. The nation’s internet imports of the steel have been at 13-year lows in June due partly to document exports of 157,000 tonnes.

Take a break from the information

Henry Steiner — the graphic designer behind “brand Hong Kong” sits down with the FT’s structure and design critic Edwin Heathcote to speak about dwelling within the metropolis — and the way it impressed visuals for a few of its prime firms.

Further contributions from Harvey Nriapia and Irwin Cruz