On Friday, the S&P 500 fell by 0.22%, closing at 5,967.84, as investors reacted to geopolitical tensions in the Middle East and speculated on future interest rate cuts by the Federal Reserve. The Nasdaq Composite declined 0.51% to 19,447.41, while the Dow Jones Industrial Average gained 35.16 points, or 0.08%, ending at 42,206.82.
Chip stocks faced pressure following a Wall Street Journal report suggesting the U.S. may revoke waivers for certain semiconductor manufacturers. Nvidia and Taiwan Semiconductor Manufacturing fell by over 1% and nearly 2%, respectively, with the VanEck Semiconductor ETF also down almost 1%. Earlier in the session, optimism arose when Federal Reserve Governor Christopher Waller hinted at potential rate cuts as early as July, though Fed Chair Jerome Powell warned that any decisions would remain data-driven and contingent on economic indicators, especially regarding the impact of President Trump’s tariffs.
Trump criticized Powell, suggesting that delaying rate cuts costs the U.S. “hundreds of billions of dollars.” Amidst these developments, tensions escalated regarding the Israel-Iran conflict, with Israeli Prime Minister Netanyahu ordering strikes on Iranian military and government targets. Trump is contemplating U.S. military involvement and is expected to decide within the next two weeks.
Chief Investment Strategist Sam Stovall noted the uncertainty in the markets, leading to cautious trading as the weekend approached. Despite the week’s fluctuations, the S&P 500 finished approximately 0.2% lower. The Dow experienced a slight 0.02% weekly gain, while the Nasdaq saw a modest 0.2% increase. Overall, market performance reflects a mix of geopolitical concerns and economic speculation.
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