July 26, Market Update

The major averages had a mixed outing on Thursday, with Facebook (FB 176.26, -41.24, -19.0%) pulling the Nasdaq away from its all-time high. The tech-heavy index lost 1.0%, while the benchmark S&P 500 declined 0.3%. The Dow Jones Industrial Average outperformed, adding 0.4%, as did the small-cap Russell 2000 (+0.6%).

Facebook plunged 19.0%, marking its worst one-day drop since going public in 2012, after the social media giant's Q2 earnings report showed lower-than-expected revenue, slowing user growth, and weaker-than-expected guidance. The top-weighted technology sector, which houses Facebook, finished way behind the ten other groups, closing lower by 1.6%. 
Chipmakers rallied after Qualcomm (QCOM 63.58, +4.16, +7.0%) reported its quarterly results and announced the end of its attempt to acquire NXP Semi (NXPI 92.81, -5.56, -5.7%) due to complications with Chinese regulators. Advanced Micro (AMD 18.35, +2.30, +14.3%) also rose on better-than-expected earnings.
Elsewhere, U.S. Treasuries sold off on Thursday, sending yields higher across the curve; the benchmark 10-yr yield, for instance, climbed four basis points to 2.98%, its highest level in two months. The U.S. Dollar Index jumped 0.6% to 94.56 amid the rise in rates, and WTI crude futures ticked up 0.4% to $69.58 per barrel.
In Europe, the ECB decided to keep its key policy rate unchanged, as expected. The central bank also reiterated that net asset purchases will likely cease at the end of December, with the reinvestment of principal payments continuing for an extended period of time thereafter.
​