Nasdaq, and S&P 500 Made Back Losses This Week; Dow Falls Short
The Dow lost ground this week while the Nasdaq and S&P 500 made back their early week losses as chip stocks improved.
Quick overview
- The U.S. stock market opened mostly flat, with the Dow experiencing a significant loss of around 12% due to fears stemming from the Middle East conflict.
- Chip stocks showed recovery after a sharp decline earlier in the week, with companies like AMD and Micron Technology stabilizing.
- Energy stocks surged amid concerns over oil supply risks, with ExxonMobil and Chevron posting notable gains.
- Overall market trends reveal volatility across financial, energy, and tech sectors, influenced by geopolitical tensions and potential interest rate hikes.
On Friday, as the stock market opened in the United States, the major indices remained mostly flat, but the Dow lost ground over the week as it felt pressure from Middle East conflict.
Major stock indices regained their lost ground by Thursday and held that ground on Friday as both the Nasdaq Composite and S&P 500 recovered from the blow of the broken ceasefire between Iran and the United States. The Dow was not as fortunate, losing around 12% at the time of writing.
That is a loss of more than 600 points for the index, and the primary cause is fear and selling pressure spurred by fighting in Iran. Traders are pulling back in worry that the conflict may spill out into other countries and be prolonged as Iran and the U.S. fail to reach an agreement. Their attacks on one another are hurting the gas and oil trade and are likely to cause prices to jump and investors to make cautious moves.
Chip Stocks Recover; Energy Stocks Surge
The U.S. stock markets experienced several strong trends this week. Chip and semiconductor stocks fell sharply around Tuesday and then recovered between Wednesday and Thursday. Advanced Micro Devices (AMD) and Micron Technology (MU) both managed to stay almost flat for the week after a severe drop and then a strong recovery.
Chip stocks are likely to grow rapidly on Friday and next week as well as the South Korean SK Hynix stock is joining the Nasdaq index. That incoming stock was able to raise more than $26 billion for its initial public offering, making it the largest foreign stock to join the domestic stock exchange.
Energy stocks climbed higher during the week on news of the ceasefire breaking. As oil supplies are once again at risk, ExxonMobil (XOM) and Chevron both posted significant gains in the middle of the week. Chevron held onto most of its gains as the market stabilized by Thursday, but ExxonMobil returned close to where it started by that time.
Stocks are mixed across the market, with all three major indices looking flat at first glance. But a deeper look shows tremendous volatility in the financial, energy, and tech sectors. Some of the biggest movers made back their losses from earlier in the week, several key stocks advanced (primarily in energy), and a few showed losses as they were impacted by Middle East fighting as well as concerns that the Federal Reserve will hike interest rates soon.
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