The Nasdaq Composite experienced its longest losing streak in over a year, falling for the sixth consecutive session as Nvidia’s decline contributed to market woes related to geopolitical conflicts and persistent inflation. The tech-heavy Nasdaq dropped 2.05% to 15,282.01 while the S&P 500 slipped 0.88% to 4,967.23, both marking their sixth straight days of negative performance. Despite this trend, the Dow Jones Industrial Average managed to rise by 0.56%, boosted by a rally in American Express shares following strong earnings.
Tech stocks faced increasing pressure during afternoon trading, with chip stocks particularly affected as investors rotated away from the sector that had previously led the bull market. Nvidia saw a significant 10% decline, its worst day since March 2020, while Super Micro Computer plummeted more than 23%. Despite concerns over escalating conflict in the Middle East following Israel’s strike on Iran, investors seemed to overlook these tensions as oil prices fluctuated amidst reports of explosions in Iran. The market remains on edge as global risks continue to impact decision-making processes.
The S&P 500 recorded its worst weekly performance since March 2023, with tech stocks driving much of the downward pressure as the sector underperformed throughout the week. With inflation concerns and uncertainties surrounding monetary policy, the market is navigating various cross-currents that are shaping investor sentiment. The Nasdaq Composite suffered a 5.5% decline for the week, while the Dow managed to secure a marginal gain, marking its first positive week in the last three. Despite these challenges, investors continue to monitor geopolitical risks and economic factors that could impact market stability in the coming weeks.
