Market slump continues, China ETFs show resilience ahead of key earnings

The S&P 500 dropped 4.36%, down 6.25% from last month’s peak. The Dow Industrials declined 3.44%, while the Russell 2000 fell 4.5% and the NYSE Composite dropped 2.96%. Jim Cramer attributed the downturn to a shift away from the data center investment theme, suggesting a potential opportunity for stocks outside the tech sector.

Interestingly, Chinese ETFs demonstrated relative strength, potentially driven by investor interest in artificial intelligence opportunities within China. The KraneShares CSI China Internet ETF (KWEB) rose 1.8%, while the iShares China Large-Cap ETF (FXI) increased by 1% and the iShares MSCI China ETF (MCHI) advanced nearly 1%.

Several companies are scheduled to report on “Squawk Box” Friday. Moderna CEO Stephane Bancel will appear live, with the stock having surged 330% in three months and 925% in a year. Under Armour shares, down 19% in three months, and Bloomin’ Brands, off 11.6% in three months, will also be discussed. Bloomin’ Brands, owner of Outback Steakhouse, has seen its shares decline 17% from their August high.

CNBC is also monitoring consumer staples, a sector often favored during economic uncertainty. While the sector fell 0.7% Thursday, certain companies like Constellation Brands (up nearly 28% in a month), Clorox (up 21%), and Walmart are showing gains.

Further analysis focuses on neocloud stocks, which experienced significant losses Thursday. CoreWeave fell almost 10%, Nebius dropped about 15%, and IREN declined approximately 17%. CNBC is also tracking Apple’s potential response to Congressional legislation and Meta Platforms’ future under the new Congress. Credit default swap prices have increased notably in the past month for CoreWeave (up 50%), Oracle (up 23%), Amazon (up 42%), and Meta (up 15%).