Sign InMarkets Recap: S&P 500 and Nasdaq Records, UiPath Layoffs, Samsung Ring
Alex Vellor
The S&P 500 set another record, closing at 5,576.98 with a slight gain of 0.07%. This is the 36th record close for the index this year.
The Nasdaq Composite also reached a new high, increasing by 0.14% to finish at 18,429.29. Both indices achieved all-time highs during the trading session. However, the Dow Jones Industrial Average didn't follow suit, dropping 0.13% to close at 39,291.97.
Samsung Enters the Smart Ring Market
Samsung (KSE: 005930) has unveiled its first smart ring, the Galaxy Ring. This new product marks the company's entry into the growing market of wearable health trackers, aiming to compete with Apple.
The Galaxy Ring can monitor various health metrics, including heart rate and sleep patterns. Samsung announced that the Galaxy Ring would be available starting July 24 and will come in three different colors.
This move is part of Samsung's strategy to integrate its tech ecosystem, enhancing connectivity between its smartphones and wearables.
Economic Risks from High Interest Rates
While the economy and labor market are holding strong, there are risks on the horizon. Federal Reserve Chair Jerome Powell cautioned that maintaining high interest rates for too long could harm economic activity and employment.
Speaking on Tuesday, J. Powell highlighted the balance the Fed must maintain. “Reducing policy restraint too late or too little could unduly weaken economic activity and employment,” he stated.
The market anticipates a Fed rate cut in September, with another quarter-point cut by the end of the year. The June meeting of the Federal Open Market Committee (FOMC) hinted at only one cut, noting that inflation is on a favorable path.
Premarket Movers:
| Company | Stock Change | Details |
|---|---|---|
| Taiwan Semiconductor Manufacturing (NYSE:TSM) | +2.4% | The world's largest chipmaker reported a 32% year-on-year growth in second-quarter revenue. |
| LegalZoom (NASDAQ:LZ) | -27% | The online legal firm cut its full-year revenue guidance and announced the resignation of CEO Dan Wernikoff, effective immediately. |
| Smart Global (NASDAQ:SGH) | +7.6% | The global leader in specialty memory solutions reported a third-quarter profit, as lower operating expenses helped offset a double-digit drop in revenue. |
| Microsoft (NASDAQ:MSFT) | +0.4% | The software giant is ready to give up an observation seat on the board of OpenAI amid regulatory scrutiny into generative AI in the U.S. and Europe. |
| Tesla (NASDAQ:TSLA) | +0.5% | Goldman Sachs raised its estimates and price target for the EV manufacturer following stronger-than-expected Q2 deliveries. |
| 3M Company (NYSE:MMM) | -0.7% | The manufacturing company announced that CFO Monish Patolawala will leave the firm at the end of the month to pursue another opportunity. |
| Honeywell (NASDAQ:HON) | -0.7% | The industrial giant is set to buy the liquefied natural-gas process technology and equipment business from Air Products (NYSE:APD), whose stock rose 2.1%, for $1.8 billion. |
UiPath Announces Significant Layoffs
UiPath (NYSE:PATH), an automation software developer, is downsizing.
The company revealed in an SEC filing that it will lay off about 10% of its workforce, roughly 420 employees, as part of a restructuring plan. The majority of these layoffs will occur by the end of the fiscal first quarter, ending next April.
UiPath expects to incur $15 million to $20 million in layoff-related costs and total restructuring costs between $17 million and $25 million. This move follows two previous rounds of job cuts in 2022. Following the announcement, UiPath's stock dropped about 7% on Tuesday and has lost more than half its value this year.
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Alex Vellor
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