On Friday, the S&P 500 fell 0.22% to 5,967.84 as investors reacted to developments in the Middle East and speculated about future interest rate cuts by the Federal Reserve. The Nasdaq Composite declined 0.51%, ending at 19,447.41, while the Dow Jones Industrial Average saw a slight gain, closing up 35.16 points (0.08%) at 42,206.82.
Chip stocks faced pressure after a Wall Street Journal report indicated that the U.S. might revoke waivers for some semiconductor manufacturers. Nvidia dropped over 1%, while Taiwan Semiconductor Manufacturing fell nearly 2%, pushing the VanEck Semiconductor ETF down nearly 1%. Initially, the S&P 500 rose as Federal Reserve Governor Christopher Waller suggested that rate cuts could occur as early as July, although Fed Chair Jerome Powell had indicated a cautious approach to rate reductions, stressing the importance of data.
President Trump criticized Powell again, claiming that delays in rate cuts were costing the U.S. “hundreds of billions of dollars.” He signaled dissatisfaction with Powell’s stance ahead of the Fed’s decision. Meanwhile, geopolitical tensions persisted, particularly regarding Israel and Iran. Israeli Prime Minister Netanyahu ordered military strikes on Iranian targets, and Trump was considering U.S. involvement in response, prompting instability in investor sentiment.
Sam Stovall, chief investment strategist at CFRA Research, noted the uncertainty faced by traders, stating, “who really wants to go long over the weekend?” Despite the week’s losses, the S&P 500 remained about 3% below its recent 52-week high. The broader market saw a weekly decline of about 0.2%, with the Dow gaining 0.02% and the Nasdaq rising 0.2%.
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