Headline: Hollywood Crap Market Report: Stocks End Negative Week Amidst Rate Hike Fears
In a week of rollercoaster trading, the S&P 500 and Nasdaq experienced their first negative week in three, dropping 1.3% and 1.9% respectively, while the Dow finished about 0.8% lower. However, the market managed to find some stability on Friday, as the S&P 500 snapped a three-day losing streak and edged up 0.14% to close at 4,457.49. The Dow Jones Industrial Average also saw a slight increase of 0.22%, gaining 75.86 points to close at 34,576.59. The Nasdaq Composite managed to eke out a 0.09% gain, settling at 13,761.53.
Energy stocks were a major winner on Friday, with the S&P sector increasing 1% and posting a 1.4% weekly gain as oil prices continued to rise. Marathon Petroleum and Phillips 66 both saw gains of about 3%, while Valero Energy jumped 4%. Technology stocks that have been struggling recently found some stability, with Apple inching up 0.4% and Microsoft and Salesforce rising about 1%. However, Nvidia and Tesla fell more than 1%, and Block suffered a 5.3% drop due to a systems outage.
The lack of bad news during Friday’s session, coupled with stronger-than-expected economic data earlier in the week, provided some comfort to investors. Nevertheless, concerns about an increase in interest rates have been reignited by recent economic data, including lower-than-expected initial jobless claims. Traders are pricing in greater than 4 in 10 chances of a rate hike in November, according to CME Group’s Fed Watch tool. This “tug-of-war” between rate hike fears and signs that companies are faring decently despite rising interest rates is causing choppiness in the markets.
In addition to interest rate concerns, corporate earnings reports were in focus. E-signature stock DocuSign lost 3.7% despite topping fiscal second-quarter estimates and posting positive third-quarter guidance. Similarly, RH dropped 15.6% on soft third-quarter guidance. Both companies reported late on Thursday.
As the markets continue to navigate economic uncertainties and looming rate hikes, investors will be closely watching for further developments and their potential impact on various industries and stocks.
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