US stocks closed mixed last week with a cloud of uncertainty stemming from the potential for a US strike in Iran and the Federal Reserve’s rate decision. The Dow Jones Industrial Average marginally increased, while the S&P 500 and Nasdaq dropped 0.2% and 0.5% respectively. Chip stocks suffered after US intentions to revoke waivers for global semiconductor manufacturers obtaining American technology in China were revealed, resulting in Nvidia’s stocks falling approximately 1.1%.
However, markets remained relatively stable throughout the week with the S&P, Nasdaq and Dow experiencing minor changes of a 0.2% decline, a 0.02% gain, and a 0.2% increase respectively. Nvidia and Taiwan Semiconductor Manufacturing were among the main losers with their stocks declining by more than 1% and nearly 2% respectively. Fed governor Chris Waller suggests interest rate cuts could come as early as July.
Despite tension escalating between Israel and Iran sparking uncertainty in the markets, the S&P 500 is still trading at roughly 3% below its recent 52-week high. The S&P 500 is poised at an impasse set by geopolitical uncertainty and trade ambiguity, with the broad market index declining 0.22% to close at 5,967.84. Nasdaq fell 0.51% settling at 19,447.41, while Dow Jones incremented by 0.08% to close at 42,206.82.
Credo Technology’s shares got a significant boost last week, gaining more than 16% by Thursday’s close. The company’s strong performance was aided by a price target increase from TD Cowen analyst Joshua Buchalter from $85 to $95, who also maintained his bullish stance on the stock. Buchalter’s optimism towards Credo hinges on the potential surge in demand for data centers resulting from the increasing use of artificial intelligence.
In the past week, financial markets have observed a mix of positive and negative impacts. The Dow Jones Industrial Average reported a narrow loss at the end of Wednesday, losing 44.14 points (0.10%) and closing at 42,171.66. This was following the Federal Reserve’s decision to keep interest rates steady and to observe the impact of President Trump’s tariffs on inflation before modifying rates. The Federal Reserve revealed it may still make two rate cuts this year but the forecast for economic growth in 2025 was lowered to 1.4%, igniting concern about stagflation. The S&P 500 slipped 0.03% to close at 5,980.87 while the Nasdaq Composite rose 0.13% to close at 19,546.27.
A major gainer in the week was Circle Internet Group, with shares soaring 83.2% from the previous week’s close due to the passing of the GENIUS Act by the U.S. Senate. This bill provides a regulatory framework for stablecoins, with Circle Internet being the sole issuer of USDC – one of the most popular stablecoins on the market. However, there are concerns related to the company’s high valuation given its revenue is subject to fluctuating interest rates and a significant portion is contingent on decisions made by Coinbase.
On the other hand, U.S. stocks fell on Tuesday due to heightened rhetoric from President Trump against Iran, calling for an “unconditional surrender”. The Dow Jones Industrial Average fell around 0.7% or 300 points, the S&P 500 dipped over 0.8%, and the Nasdaq Composite retracted over 0.9%. This was despite reports of Iran seeking a ceasefire the previous Monday. Wall Street is also grappling with concerns over Trump’s trade policy, fears of increased tariffs and the direction of U.S. interest rates.
Sources:
- Stock market today: S&P 500, Nasdaq fall amid Fed rate uncertainty as Trump mulls Iran move
S&P 500 posts third straight losing day as traders eye Middle East tensions, Trump’s next steps: Live updates
The Israel-Iran conflict and the other big thing that drove the stock market this week
Wall Street will continue to monitor the Iran-Israel conflict next week, with stocks at an impasse- Why Credo Technology Stock Was Marching Higher This Week
Dow posts narrow loss after Fed signals it’s in no hurry to cut rates: Live updates- Why Circle Internet Stock Skyrocketed 83.2% This Week
