Global Stock Market Index: 28th July 2024 Weekly Recap

It was a volatile week for the global market, with almost all major indices closing in the red. Mixed sentiment in the US market due to the significant sell-off in tech and AI stocks, lower-than-expected corporate earnings in the technology and luxury goods sectors weighing on stock market returns, and a slowdown in major Asian economies dragged the market down.

Crude oil prices continued to fall this week, with Brent Crude dropping more than 5% to settle below $81. Meanwhile, gold climbed 2.43% to a new all-time high.

Let’s look at how the major stock market indices did this week

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	1.64	0.75
S&P 500	1.11	-0.83
Nasdaq	1.03	-2.08
European Markets
FTSE 100	1.20	1.59
CAC 40	1.21	-0.22
DAX	0.65	1.35
Asian Markets
Nifty 50	1.76	1.50
Nikkei 225	-0.54	-5.98
Straits Times	-0.12	-0.61
Hang Seng	0.10	-2.28
Taiwan Weighted	-3.40	-3.28
KOSPI	0.78	-2.27
SET Composite	1.20	-0.75
Jakarta Composite	0.66	-0.09
Shanghai Composite	0.14	-3.07

US Markets

The US market was extremely volatile during the week as small-cap stocks outshined large-cap stocks for the second consecutive week. The $1 trillion sell-off in big tech stocks after disappointing earnings releases from Google and Tesla. Both stocks lost 7.51% and 10%, respectively, during the week. 

In June, the inflation stayed steady at an annual rate of 2.6%, not far above the 2% target for the Federal Reserve’s inflation path, which again increases the probability of a September rate cut. 

Let’s see how the world’s most tracked indexes performed.

Dow Jones

Amidst the market volatility, the Dow Jones Industrial Average (DJIA) fell amid a surge during Friday’s session and was up by 1.64%, led by 3 M’s better-than-expected performance. Friday’s surge helped the index recover its losses during the week and close with gains of 0.75%.

S&P 500

Favorable inflation and consumer spending data helped the S&P 500 gain ground on Friday. It was up by 1.11% during the day, but it concluded the week with a cumulative loss of 0.83%. 

Nasdaq

Tesla and Google wiped $1 trillion in value of U.S. equities, indicating a broad-based correction may come. NASDAQ was up by 1.03% on Friday, but it concluded the week with a cumulative loss of 2.08%. 

European Markets

European equity markets fell midweek as earnings in the technology and luxury goods sectors weighed on returns. Further, selling in tech stocks in the US also contributed to the bearish momentum. 

Let’s look at how the top three European indexes performed during the week. 

FTSE 100

In contrast to the slowdown in major European economies, the UK economy is showing signs of good health. It continues to be one of the best-performing economies in the European region. On Friday, the index was up by 1.20%, and on a week-on-week basis, it was up by 1.59%. 

CAC 40

The country’s focus has now turned towards the Olympics, and it is expected to benefit economically from them. In Friday’s session, CAC 40 was up by 1.21%, which helped to recover some of the weekly losses. The index concluded the week with a slight loss of 0.22%. 

DAX

Germany continues to face challenging economic conditions, and the steep fall in manufacturing and services activity is leading to a slowdown similar to those in the Eurozone economy.

Following the broader cues in the European market, the DAX went higher during Friday’s session. It was up by 0.65% and 1.35% week-on-week. 

Asian Markets

The rout in US tech stocks caused most Asian indexes to trade lower this week. Furthermore, domestic factors influenced the market. Let us take a closer look at how the various Asian indices performed during the week.

Nifty 50

The Indian market experienced a particularly volatile week. On Friday, the Nifty 50 and the Sensex broke their five-day losing streak. The better-than-expected release of earnings data by IT companies contributed to the market’s positive momentum. On Friday, the Nifty 50 rose by 1.76%, up 1.50% weekly. 

Nikkei 225

Japanese technology stocks remained under pressure as shares of U.S. mega-cap technology companies experienced significant selling pressure. Japan’s stock markets witnessed sharp weekly losses, with the Nikkei 225 Index down 6.0%.

Straits Times

Bucking the market’s overall trend, Singapore’s primary stock market index was flat on Friday and down 0.12% weekly, ending the week 0.61% lower.

Hang Seng

Weaker-than-expected economic growth put Chinese stocks under pressure. In Hong Kong, the benchmark Hang Seng Index rose by 0.10% on Friday. However, every week, the index fell by 2.28%.

Taiwan Weighted

Following the cues from the global market and its Asian peers, the Taiwan Weighted index fell by 2.31% in Friday’s session. On a weekly basis, the index was down by 4.38%.

KOSPI

South Korea’s economy unexpectedly contracted in the second quarter, marking the sharpest contraction since 2022, as falling consumer spending impacted exports. GDP for April-June fell 0.2% from the previous quarter. KOSPI, South Korea’s primary stock market index, was up by 0.78% on Friday. On a weekly basis, the index fell 2.27%.

SET Composite

Thailand’s equity market index, SET Composite, was up by 1.20% during Friday’s session and down by 0.75% week-on-week.

Jakarta Composite

The Indonesian stock market failed to gain enough positive momentum during the week to close higher. On Friday, the index was up by 0.66%; on a week-on-week basis, it was slightly down by 0.09%.

Shanghai Composite

Chinese stocks fell after the central bank’s unexpected rate cuts failed to boost economic confidence. The People’s Bank of China has reduced the one-year medium-term lending facility rate to 2.3% from 2.5%. The Shanghai Composite Index fell 3.07% week on week.

Wrapping Up

As we look ahead, market sentiment remains cautious despite the sell-off of AI stocks. Closely watching the economic indicators and corporate earnings reports will help gauge the markets’ future direction. With ongoing volatility, staying informed and considering long-term investment strategies is crucial to navigating the uncertainties.

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