S&P 500 Approaches 6-Day Decline, Nasdaq 100 In Line for Worst Week Since Late 2022: Factors Impacting Market Trends on Friday

Good day! It’s been an eventful Friday in the world of U.S. stocks, with another week coming to a close amidst some declines.

The market saw the Nasdaq 100 drop by over 5% this week, potentially the most significant decline since late October 2022. Meanwhile, the S&P 500 is facing its sixth consecutive day of losses, marking the longest streak since September 2022. Investor sentiment has been swayed by concerns over interest rates, corporate earnings, and geopolitical tensions.

In the tech world, semiconductor stocks tracked by the VanEck Semiconductor ETF SMH are down 2.7%, looking at a weekly decline of about 8%, which is the most significant drop since June 2022.

Last night, Israel conducted a limited retaliation against Iran, targeting a location near an air base facility without causing significant damage.

Yields on shorter-dated U.S. Treasury bonds have remained stable around 5%, holding steady since mid-November 2023, with Federal Reserve Chair Jerome Powell standing firm against rate cuts.

Gold prices skyrocketed to $2,400 per ounce amidst escalating tensions in the Middle East, while oil prices settled after an initial rise following the Israeli strike.

Bitcoin BTC/USD experienced a modest increase of over 1%, with the crypto community eagerly anticipating the upcoming halving event.

Let’s Look at How Major US Indices and ETFs Performed Today

Major Indices	Price	1-day %chg
Dow Jones	38,001.61	0.6%
Russell 2000	1,947.93	0.0%
S&P 500	4,984.63	-0.5%
Nasdaq 100	17,127.17	-1.5%

The SPDR S&P 500 ETF Trust SPY fell 0.4% to $496.85, the SPDR Dow Jones Industrial Average DIA rose 0.5%% to $379.83, and the tech-heavy Invesco QQQ Trust QQQ tumbled 1.5% to $417.03, as reported by Ailtra Pro data. 

In terms of sectors, the Utilities Select Sector SPDR Fund XLU stood out, gaining 1.6%, followed by the Energy Select Sector SPDR Fund XLE with a 1.3% increase. Meanwhile, the Technology Select Sector SPDR Fund XLK was the biggest decliner, down 1.5%.

Stocks Making Moves on Friday

• Paramount Global PARA surged 13% on rumors of Apollo Global Management APO and Sony Group Corp. SONY considering a joint bid for the company.
• Super Micro Computer Inc. SMCI saw an 18% drop after announcing its third-quarter earnings date without providing preliminary estimates.
• Netflix, Inc. NFLX experienced a nearly 9% decline despite beating Street estimates last quarter. Investors reacted negatively to the company’s decision to discontinue providing quarterly disclosures on subscriber growth or average revenue per member starting next year.
• Following earnings reports, American Express Co. AXP rose by 5.5%, Fifth Third Bancorp FITB by 5.6%, Huntington Bancshares Incorporated HBAN by 1.5%, Regions Financial Corporation RF down by 0.7%, Procter & Gamble Company PG stayed flat, and Schlumberger Limited SLB dropped by 1.5%.
• Tesla Inc. TSLA experienced a 0.5% decrease after recalling thousands of Cybertrucks due to an accelerator pedal issue.

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