Imagine you have a basket of apples that you bought when they were very cheap. Now, the apples have become very expensive and many people want to buy them. This makes the value of your basket of apples go up a lot.

Recently, the value of the basket went down a lot because some of the apples that people thought were very good and worth a lot of money, didn't do as well as people expected. This made people worried and they decided not to buy as many apples.

So, the people who have the apple baskets are now worried that the value will go down even more. This is what happened to the stock markets in the United States. Some big companies that people thought were doing very well didn't do as well as people expected, so the value of their stocks went down. This made other people worried and they decided not to buy as many stocks. This caused the stock markets to go down a lot. Read from source...

- AI criticizes the U.S. stock markets for tumbling on Jul 24, following weaker-than-expected earnings results of some AI-centric stocks. However, the article's own title and first paragraph acknowledge that there were several other factors contributing to the market decline, such as lower-than-expected earnings of other stocks, higher inflation, and interest rate concerns. This creates a misleading impression that the market decline was solely due to AI-centric stocks.
- AI criticizes investors' preferences for shifting from overvalued technology stocks to cyclical stocks, but does not acknowledge that this shift may be justified by changing fundamentals and expectations. The article implies that this shift is irrational and driven by speculation, without providing any evidence or analysis to support this claim.
- AI implies that the market may remain volatile in the near future, but does not provide any reasoning or data to support this claim. The article cites volatility in AI-centric stocks as a reason for investing in low-beta, high-dividend stocks, but does not acknowledge that these stocks may also be subject to market fluctuations and may not provide a reliable shelter from volatility.
- AI presents a list of five low-beta, high-dividend stocks as investment options, but does not provide any analysis or explanation of why these stocks are suitable for the current market conditions. The article simply lists their names, beta values, dividend yields, and expected revenue and earnings growth rates, without discussing their business models, competitive advantages, risks, or valuations. The article also does not disclose any conflicts of interest or personal bias that may influence its recommendations.
- AI uses a manipulative headline that suggests a "special report" or an "exclusive" on how to profit from the market downturn, but does not deliver on this promise. The article does not provide any actionable strategies, tips, or insights on how to invest in low-beta, high-dividend stocks or how to take advantage of the market conditions. The article is essentially a list of stock picks without any substantiated rationale or analysis.

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Article's Main Idea: U.S. stock markets tumbled on July 24 following weaker-than-expected earnings results of some AI-centric big tech stocks, leading to increased market volatility.
Article's Recommendation: Investing in low-beta stocks with a high dividend yield and a favorable Zacks Rank may be the best option in the current market situation.
Article's Key Information:
- The Dow, the S&P 500 and the Nasdaq Composite plummeted 1.3%, 2.3% and 3.6%, respectively, on July 24.
- The S&P 500 and the Nasdaq Composite posted their worst single-day performance since 2022.
- Investors' preferences shifted from highly overvalued technology stocks to rate-sensitive cyclical stocks.
- Lower-than-expected earnings of AI-centric big tech stocks rattled investors' sentiment.
- Interactive Brokers Group, Reinsurance Group of America, Packaging Corporation of America, Franco-Nevada and Fox Corp. are five low-beta stocks with a solid dividend yield and a favorable Zacks Rank.

- U.S. stock markets tumbled on Jul 24, following weaker-than-expected earnings results of a couple of so-called "Magnificent 7" stocks. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — plummeted 1.3% (504.22 points), 2.3% (128.61 points) and 3.6% (654.94 points), respectively. The S&P 500 and the Nasdaq Composite posted their worst single-day performance since 2022.
- Wall Street witnessed an impressive bull run in the past 19 months, barring some minor fluctuations. The rally was predominantly driven by big technology stocks, buoyed by the astonishing adoption of generative artificial intelligence globally. Consequently, several AI-centric stocks skyrocketed 200-300% during this period.
- However, the situation started changing this month as investors' preferences shifted from highly overvalued technology stocks to beaten-down rate-sensitive cyclical stocks. This happened after market participants' expectations of two Fed rate cuts of 25 basis points this year jumped to more than 90%.
- In addition, lower-than-expected earnings of AI-centric big tech stocks rattled investors' sentiment on whether these companies will be able to deliver in the near future in order to support their overstretched valuations.
- We believe, the market may remain volatile in the near future as a lot of big tech stocks are yet to report quarterly financial results. Any deviation from the market's expectations with respect to any metric (financial or operational) will result in volatility.
- At this stage, investment in low-beta stocks with a high dividend yield and a favorable Zacks Rank may be the best option. If markets regain momentum, the favorable Zacks Rank of these stocks will capture the upside potential. However, if the downtrend continues, low-beta stocks will minimize portfolio losses and dividend payments will act as a regular income stream.
- Our Top Picks
- Interactive Brokers Group Inc. (IBKR)
- Reinsurance Group of America Inc. (RGA)
- Packaging Corporation of America (PKG)
- Franco-Nevada Corp. (FNV)
- Fox Corp. (FOX)

The article provides a compreh