Market Highlights: Nasdaq roasted as it plunges 3pc; and 5 ASX small caps to watch today

ASX to open 1% lower, following losses in New York
Nasdaq plunged by 3pc, its worst day since October 2022
Cboe VIX Index surges above 18, reflecting heightened market volatility

The ASX200 index is expected to fall when the market opens on Thursday, in line with losses in New York. At 8am AEST, the ASX200 futures contract was pointing down by 1%.

Overnight, the Nasdaq had one of its worst days since 2022, down by 3.64%. The S&P 500 finished the day 2.31% lower, and the blue chips Dow Jones index slipped by 1.25%.

As stocks tumbled, the Cboe VIX Index, which is also called the “fear index”, surged to over 18, its highest level since late April.

Tech stocks plunged following disappointing earnings reports from Alphabet and Tesla after the bell yesterday, sparking concerns that the ability of Big Tech to drive further markets gains may be losing steam.

Collectively, the Magnificent 7 tech stocks saw their market cap plummet by over US$750 billion, marking the largest single-day decline ever recorded for the group.

Apple, Amazon, Alphabet, Meta, and Microsoft all saw declines of at least 2.5%, while Tesla plummeted over 11% following disappointing quarterly earnings that failed to meet forecasts.

Shares of chip companies also took a hit, with Nvidia falling nearly 7%, while Broadcom and Arm each declined around 8%.

Ford Motor dropped 11% post-market after the company lowered its profit guidance for its Blue model and reported earnings that were lower than anticipated.

And Chipotle was up 5% in after-hours trading following the release of its Q2 earnings that exceeded Wall Street’s expectations.

Meanwhile, in economic news, business activity in the US expanded at its quickest rate in over two years.

“The flash PMI data signals a ‘Goldilocks’ scenario at the start of the third quarter, with the economy growing at a robust pace while inflation moderates,” said Chris Williamson at S&P Global Market Intelligence.

Trump to speak at Bitcoin conference

Donald Trump is set to address the Bitcoin Conference tomorrow in Nashville, Tennessee.

This marks the first time a former president and current political figure has attended the world’s largest annual Bitcoin event.

Trump, who has recently embraced cryptocurrency after previously criticising it, will speak at 2pm, CT on July 27, concluding the conference with a 30-minute speech.

Trump’s evolving stance on crypto has garnered attention, especially as his campaign now accepts donations in Bitcoin, Ether, Dogecoin, Solana, and other cryptocurrencies.

His vice presidential running mate, Senator J.D. Vance, also holds Bitcoin investments.

The crypto community is eager to hear Trump’s plans for supporting cryptocurrency and blockchain technologies through policy.

The Bitcoin conference in Nashville has become an important platform for political discussion, featuring other crypto-friendly figures including independent presidential candidate Robert F. Kennedy Jr. and former Republican presidential candidate Vivek Ramaswamy.

Prominent advocates such as Cathie Wood and Michael Saylor will also be present, making the event a convergence of both financial and political interests.

Interestingly, Vice President of the United States Kamala Harris was this week belatedly invited to attend and speak at the conference but has reportedly declined the offer.

In other markets …

Gold price slipped by 0.5% to US$2,395.50 an ounce.

Oil prices were also 0.5 higher, with Brent crude now trading at US$81.50 a barrel.

The benchmark 10-year US Treasury yield climbed by 4 basis points (bond prices lower) to 4.29%.

The Aussie dollar retreated further, by 0.5%, to trade at US65.82 cents.

The iron ore price rose modestly by 0.3% to US$100.90 a tonne.

Bitcoin meanwhile was down by 0.8% in the last 24 hours to US$65,406, while Ethereum tumbled by over 4% to US$3,330.

5 ASX small caps to watch today

Alto Metals (ASX:AME)
Alto has received approval for new mining leases covering the Bull Oak and Indomitable Camps at Sandstone. These camps contain significant mineral resources, with Indomitable hosting 210,000 ounces of gold and Bull Oak holding 65,000 ounces. Looking ahead, Alto’s exploration efforts are focused on enhancing resource potential in the Alpha domain and through regional exploration. Activities include fieldwork and soil sampling at Lightning and Vanguard prospects, with upcoming RC drilling planned. Additionally, assay results are awaited from sampling at Bollinger and Lightning prospects.

Argent Minerals (ASX:ARD)
Argent has significantly increased the silver content at the Kempfield Silver Deposit in Australia to 65.8 million ounces, up 54% from 42.8 million ounces. This makes Kempfield the second largest undeveloped silver deposit in Australia. The deposit also holds 125,192 ounces of gold, 207,402 tonnes of lead, and 420,373 tonnes of zinc. The project spans 2.3 kilometers in length and 400 meters in width, with mineralization extending down to 370 meters deep. Argent plans to expand the resource through extensive drilling and exploration of new prospects nearby.

Lefroy Exploration (ASX:LEX)
Lefroy is launching an air core drilling initiative across its Lefroy Project, situated 35 kilometers southeast of Kalgoorlie. This program aims to explore a 40-kilometer stretch along the Mt Monger and Talcum Faults corridor, known for hosting significant gold deposits like Mt Martin, Salt Creek, and Burns, yet remains largely unexplored. The project targets are part of the Boulder-Lefroy to Mount Monger Fault district, renowned for multiple active gold mining centers. This 15,000-meter drilling effort follows a comprehensive strategic review, pinpointing promising locations for exploration within the company’s vast 635-square-kilometer landholdings in the Eastern Goldfields.

Perpetual Resources (ASX:PEC)
Perpetual has reported promising initial assay results from its Raptor REE Project, showing high grades of Total Rare Earth Oxides (TREO) exceeding 4,500 ppm in surface samples of outcropping saprolite. These findings highlight Raptor’s potential as a significant ionic clay-hosted rare earth element (REE) exploration project, comparable to other successful ventures in the region. Ongoing exploration efforts, including additional surface sampling and deeper auger drilling, are expected to further delineate the project’s mineralization.

Black Cat Syndicate (ASX:BC8)
Black Cat has provided an update on operations at its Paulsens Gold Operation. Exploration efforts continue to uncover promising high-grade gold intercepts, including notable results like 1.10 meters at 163.91 grams per tonne of gold and 1.84 meters at 75.55 grams per tonne of gold. These discoveries support ongoing mapping, sampling, and preparation of mining areas not covered in the recent study. The project holds multiple opportunities for further exploration, particularly in areas with developed high-grade veins that require additional drilling to establish resource estimates.

At Stockhead we tell it like it is. While Argent Minerals and Perpetual Resources are Stockhead advertisers, they did not sponsor this article.