Dow Jones, S&P 500 and Nasdaq today: Wall Street’s recent momentum lost steam on Friday as investors pulled back from technology stocks, rising Treasury yields added pressure, and disappointment followed the closely watched summit between US president Donald Trump and Chinese President Xi Jinping.
S&P 500, Nasdaq and Dow Jones Close Lower Amid Market Sell-Off
After weeks of strong gains driven largely by enthusiasm around artificial intelligence, markets shifted into a more cautious mood. The S&P 500 fell 1.24% to close at 7,408.50, while the Nasdaq Composite dropped 1.54% to 26,225.14. The Dow Jones Industrial Average also moved lower, falling more than 537 points to end the session at 49,526.17.
Nvidia, Intel and AMD Lead Technology Stock Declines
Much of the selling centered around technology companies that had recently been among the market’s biggest winners. Investors appeared to lock in profits after a sharp rally in the sector. Intel fell more than 6%, while Advanced Micro Devices and Micron Technology declined 5.7% and 6.6%, respectively. Nvidia also dropped 4.4%.
Cerebras Systems, which had surged 68% during its Nasdaq debut the previous day, gave back part of those gains and fell 10% on Friday.
Adam Crisafulli of Vital Knowledge said the technology sector had experienced “an extremely unsustainable move in recent weeks” and remained vulnerable to profit-taking regardless of headlines, as per a CNBC report.
Microsoft Stock Rises After Bill Ackman’s Pershing Square Investment
One major tech stock moved against the broader trend. Microsoft rose 3% after Bill Ackman said Pershing Square had built a position in the company.
Rising Treasury Yields and Inflation Concerns Pressure Markets
Rising Treasury yields added more pressure to equities. The 30-year Treasury yield climbed above 5.1% as investors reacted to a series of inflation reports released during the week. Concerns over inflation were also tied to rising oil prices linked to tensions involving Iran.
Oil Prices Surge as Donald Trump Comments on Iran
Oil prices climbed sharply on Friday, with US West Texas Intermediate crude settling above $105 per barrel and Brent crude ending above $109. The move higher came after Trump said he was “not going to be much more patient” with Iran and added that “they should make a deal,” as quoted by CNBC.
Investors also appeared underwhelmed by the outcome of the Trump-Xi summit. While the two sides agreed that the Strait of Hormuz should remain open, markets had hoped for larger policy announcements or breakthroughs.
Boeing Stock Continue Falling After China Jet Deal Announcement
Boeing shares continued falling after Trump said China agreed to buy 200 Boeing jets, only slightly above previous expectations. The stock dropped another 3.8% after falling nearly 5% in the prior session.
Concerns Grow Over Dependence on Big Tech Stocks
Some investors are also becoming increasingly uneasy about how dependent the broader market rally has become on a small group of major technology companies. Argent Capital Management’s Jed Ellerbroek said overall investor sentiment remains optimistic, but he noted that the wider market has not kept pace with the biggest tech names, as per the CNBC report.
Federal Reserve Rate Hike Fears Return as Oil Prices Rise
Meanwhile, concerns about oil prices and inflation are beginning to shape expectations for the Federal Reserve. According to CME Group’s FedWatch tool, traders now see the possibility that the Fed’s next move could be an interest rate hike rather than a cut.
Dan Niles of Niles Investment Management warned that sustained spikes in oil prices is being linked to recessions, saying that, “When you see oil price spikes, they don’t really matter if they come back down again,” adding, “But when oil ... sees a surge of 50% that lasts a quarter or two, then you start to have to worry about a recession,” as quoted by CNBC.
FAQs
How much did the S&P 500 fall today?The S&P 500 dropped 1.24% to close at 7,408.50.
Why did oil prices rise?
Oil prices climbed after comments from Donald Trump regarding Iran.
