Nasdaq Jumps 1.2% in Recovery Attempt from Brutal Friday

Quick overview

Stocks fell dramatically on Friday, pulling Micron Technology (MU) down 13%, but Monday saw the start of an upward climb as the Nasdaq Composite moved up 1.2%.

Falling tech stocks was the big story for the weekend. However, premarket trading Monday indicated a turnaround. Micron Technology, which fell so far on Friday, was up just over 5% on Monday in early trading. The tech-heavy Nasdaq rose more than 1% while the S&P 500 added 0.6% and the Dow Jones gained 0.2%.

Stocks may feel pressure from the Middle East again soon as Israel and Iran are sending missiles to one another. The fragile ceasefire that Israel has been trying to hold together with Lebanon may not hold for much longer either, and Iran and is looking to jointly control the Strait of Hormuz with Oman. Investors should expect these tumultuous developments to impact energy stock in particular but also have a smaller impact on the wider stock market.

Nasdaq Turns around on Tech Stocks

Technology futures has a rough day Friday, and the Nasdaq Composite lost 4.2% that day as Micron Technology, Broadcom (AVGO), Nvidia (NVDA) and others experienced significant declines. This was likely a market correction at the end of a lengthy rally, and Monday’s climb back is further indication that the market is attempting to stabilize.

The Nasdaq did not make back all of its lost ground Monday at the time of writing, but it was well on its way. The S&P 500 and Dow fell less dramatically Friday since they have less tech stock focus and those were the stocks that dropped the hardest.

Monday’s movement is most bullish, with the majority of major tech stocks showing gains. Nvidia ticked up 0.70% as the market opened, and Advanced Micro Devices (AMD) jumped 2.58%. There is renewed interest in these stocks after Friday’s decline, and the recent jobs report was overwhelmingly positive, likely easing selling pressure as investors feel optimistic about the economy.

The conflict in Iran and surrounding areas continued through the weekend, with strikes on Sunday from Iran putting the ceasefire agreement at risk. The United States continues to block naval movements in the area, and Israel and Lebanon are still sending missile volleys toward one another. The situation there is causing oil prices to fluctuate and pushed prices higher on Monday. West Texas Intermediate oil rose 1% and reached $92 per barrel while Brent crude oil climbed to $86 per barrel as it gained 1.36% from the previous day.

Stocks are at risk of coming back down again because of how high inflation is and how quickly stocks have climbed in recent weeks. Investors should expect further fluctuations, particularly in the energy and technology markets as they are moved by the Iranian conflict and the widespread interest in the AI market.

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Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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