SUPERNEWS

Macro

S&P 500 Hits 6-Day Loss, Nasdaq Down 5% Amid Rate, Geopolitical Woes

Nasdaq 100 drops over 5% in its worst week since late 2022, as S&P 500 faces a 6-day losing streak amid market turmoil.

By Barry Stearns

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4/19, 14:53 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
American Express Company
Fifth Third Bancorp
NASDAQ 100
Netflix, Inc.
S&P 500
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Key Takeaway

  • Nasdaq 100 drops over 5% this week, its worst since late October 2022; S&P 500 on a six-day losing streak due to rate concerns and geopolitical tensions.
  • Gold prices hit $2,400 amid Middle East tensions; semiconductor stocks and U.S. Treasury yields stable.
  • Paramount Global surges 13% on buyout rumors; Netflix falls nearly 9% after announcing end to subscriber growth disclosures.

Market Downturn Persists

U.S. stocks are on a downward trajectory, with the Nasdaq 100 experiencing a significant drop of over 5% this week, marking its most considerable decline since late October 2022. The S&P 500 is not faring much better, with its sixth consecutive day of losses, the longest streak since September 2022. This downturn is attributed to a mix of concerns over interest rates, corporate earnings, and escalating geopolitical tensions, particularly with recent developments in the Middle East following Israel's limited retaliation against Iran.

Interest Rates and Commodity Prices

Despite the market's negative performance, yields on shorter-dated U.S. Treasury bonds have remained stable at around 5%, a level consistent since mid-November 2023. This stability comes amid Federal Reserve Chair Jerome Powell's firm stance against rate cuts. In contrast, gold prices have surged to $2,400 per ounce, driven by the heightened tensions in the Middle East, while oil prices have seen stabilization after an initial spike following the Israeli strike.

Sector and Stock Movements

The market's downturn has seen varied impacts across different sectors and individual stocks. The technology sector, particularly semiconductor stocks, has been notably affected, contributing to the broader market strain. However, there have been positive movements within the financial and media sectors. Paramount Global saw a significant increase of 13% on rumors of a potential acquisition, while financial institutions like American Express and Fifth Third Bancorp reported gains following their earnings announcements. Conversely, companies like Super Micro Computer and Netflix faced declines, with Netflix's decision to stop providing quarterly subscriber growth disclosures notably impacting investor sentiment.