Top Line
On Friday, all major U.S. stock indexes saw declines of at least 1.3%, with technology stocks leading the way downwards. The Nasdaq experienced a significant drop, plummeting over 4%.
Important Facts
- The Nasdaq was the hardest hit, falling 4.1% and erasing nearly a month’s worth of gains.
- The S&P 500 closed down 2.6%, marking a nearly 2.6% decrease for the week and ending a nine-week winning streak.
- Despite the dip, the S&P 500 is still up 1.7% when considering last month’s performance.
- Tech stocks had a rough day, with Intel down more than 11%, Oracle falling 9.5%, and Nvidia dropping nearly 6%.
- The Dow Jones Industrial Average decreased by 1.3% on Friday, but has gained over 3% in the past month.
Amazing Facts
If the S&P 500 were to continue winning for another ten weeks, it would mark the longest streak since 1985.
Tangent
Bitcoin dropped below $60,000 following the announcement from a cryptocurrency holding company, owned by billionaire Michael Saylor, that it would sell 32 bitcoins to generate about $2.5 million. This was its first sale since December 2022. Meanwhile, prices for gold and silver have also declined, reflecting broader market trends often driven by economic uncertainties.
Main Background
Friday’s declines capped off what had been a strong month for the major indexes. The S&P 500 notably experienced a nine-week rise, its longest since 2023. The Nasdaq remains up 1.5% month-over-month, buoyed by advancements in artificial intelligence and substantial infrastructure spending by tech giants, who are projected to allocate $750 billion for AI this year. Both the S&P 500 and Nasdaq have increased at least 7.8% since the start of the year. Mark Hackett, a national chief market strategist, noted that while investors seemed ready to sell, they might not need to exit completely.
