The S&P 500 and Nasdaq Composite both ended higher on Thursday, partly credited to a surge in Oracle shares. The S&P 500 went up by 0.38% to close at 6,045.26, and Nasdaq gained 0.24% to reach 19,662.48. The Dow Jones Industrial Average also increased, settling at 42,967.62 with an addition of 101.85 points, or 0.24%. Oracle’s shares experienced a 13% increase after delivering positive fiscal fourth-quarter results and projecting more cloud growth. Boeing shares, on the other hand, decreased by nearly 5% after an Air India Dreamliner 787 crash.
On Friday, stocks fell due to escalating conflicts between Israel and Iran. The Dow dropped 769.83 points or 1.79% to end at 42,197.79, while the S&P 500 closed at 5,976.97 with a decrease of 1.13%. The Nasdaq Composite lost 1.30% to settle at 19,406.83. All these factors resulted in the S&P 500 and Nasdaq ending the week with losses of 0.4% and 0.6%, respectively, and the Dow Jones decreasing by 1.3% for the week.
The major gainers included tech companies led by Oracle, which surged 13%. Safe assets like Gold also saw a rise, Lockheed Martin and RTX recorded gains of over 3% each, and Exxon added 2% due to the increased oil prices.
Boeing was among prominent losers, shedding nearly 5% after a major plane crash. Nvidia along with other stocks leading the market’s comeback since April also saw significant drops as investors moved away from riskier assets.
Wall Street faced a turbulent week, with stocks ending lower due to geopolitical tensions and awaited trade and federal decisions. The S&P 500 lost 0.27% to close at 6,022.24, ending a three-day winning streak. The Nasdaq Composite fell 0.5% to 19,615.88. The Dow Jones Industrial Average shed a mere 1.1 points, closing at 42,865.77.
Top losers for the week include Visa and Mastercard, which tumbled around 5% after a Wall Street Journal report suggested major retailers are exploring stablecoin options to bypass traditional card payment fees. GameStop shares also fell significantly, dropping more than 23% after announcing plans to offer convertible notes.
Boeing and GE Aerospace shares fell following a crash of an Air India plane shortly after take-off. The Boeing 787-8 Dreamliner plane was reportedly powered by GE Aerospace’s GEnx-1B engines.
On the other hand, Oracle shares surged over 23% in the week after posting impressive quarterly earnings. The company’s performance defied the general market trend, rising even in the face of increased risk. BMO Capital markets upgraded the stock to ‘Outperform’ and raised its price target to $235 per share.
Investors remained on edge regarding geopolitical tensions and potential impact on global financial markets as conflicts between Israel and Iran escalated. A surge in oil prices due to these conflicts is expected to have an impact on inflation. The Federal Reserve meeting is another focal point for investors as they await decisions on interest rates.
While the market volatility continues, U.S.-China talks are also a point of attention for investors, with the leaders of both nations needing to approve a trade deal framework that includes rare-earth mineral exports and rollback of restrictions on sale of advanced technology. There was speculation over potential change in U.S. tariffs on Chinese imports, but they are set to remain at current levels.
Another concern for investors is the rising oil prices due to escalating tensions in the Middle East. For consumers, the risk of gas prices going up in proportion to oil prices is looming, which could impact discretionary spending. Despite the uncertainty, the market is awaiting consumer sentiment indexes and retail reports for more clarity about the state of the economy.
Sources:
- S&P 500 closes higher on Thursday, lifted by Oracle rally and favorable inflation report: Live updates
- Stock market today: Dow, S&P 500, Nasdaq drift higher, dollar slides amid renewed tariff threats
- Investors eye Middle East tensions and the Fed’s ‘dot plot’: What to know this week
- Dow falls more than 700 points on Friday as attacks between Israel and Iran escalate: Live updates
- Stock market today: Dow, S&P 500, Nasdaq dive, oil surges as Israel and Iran trade strikes
- S&P 500 closes lower, snapping 3-day winning streak
- Here are the 4 big things we’re watching in the stock market in the week ahead
- Israel-Iran attacks and the 2 other things that drove the stock market this week
- This week in Trumponomics: Good news that doesn’t matter
- Investing.com’s stocks of the week
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