Highlights
Big technology stocks got whacked to lead equities mostly lower Friday. The Dow Jones industrial average firmed 0.6 percent, the S&P 500 fell 0.9 percent, and the Nasdaq dropped 2.1 percent. US Treasury yields and the dollar declined while oil prices rose.
Risk appetite suffered from news that Israel had retaliated for Iran's attack on Israel though the impact was limited and US Treasuries were mostly steady as it became clear that the strike had been modest and appeared unlikely to provoke a wider conflagration.
Chipmakers, which have been market favorites, led the way down Friday after Super Micro Computer set an earnings day but offered no preannouncement. The news added to worries that investors have been carried away by hype around artificial intelligence. Nvidia, the AI champion, fell 10 percent, its worst day since March 20.
The Magnificent Seven ended a horrible week with Tesla down 14 percent in the last five days, and Meta down 7 percent in the period. Netflix dropped after announcing it would no longer report its quarterly subscriber growth.
Best sectors included energy, financials, real estate, industrials, and materials. Lagging were consumer discretionary, information technology and communications services.
Risk appetite suffered from news that Israel had retaliated for Iran's attack on Israel though the impact was limited and US Treasuries were mostly steady as it became clear that the strike had been modest and appeared unlikely to provoke a wider conflagration.
Chipmakers, which have been market favorites, led the way down Friday after Super Micro Computer set an earnings day but offered no preannouncement. The news added to worries that investors have been carried away by hype around artificial intelligence. Nvidia, the AI champion, fell 10 percent, its worst day since March 20.
The Magnificent Seven ended a horrible week with Tesla down 14 percent in the last five days, and Meta down 7 percent in the period. Netflix dropped after announcing it would no longer report its quarterly subscriber growth.
Best sectors included energy, financials, real estate, industrials, and materials. Lagging were consumer discretionary, information technology and communications services.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
