Closing Stock Market Summary
The stock market finished the week with solid losses. The Dow Jones Industrial Average logged a 1.2% decline, the S&P 500 fell 1.5%, the Nasdaq Composite slid 1.6%, and the Russell 2000 closed with a 1.9% loss.
Heightened geopolitical uncertainty in front of a weekend contributed to today's sell-off. Concerns were related to reports that Iran could soon attack Israel, which also sent oil prices higher ($85.58/bbl, +0.58, +0.7%) due to worries about supply disruptions.
Treasuries also settled with solid gains today in response to the geopolitical angst, but still registered declines on the week as participants recalibrated rate cut expectations. The 2-yr note yield fell nine basis points today, and jumped 15 this week, to 4.88%. The 10-yr note yield declined eight basis points today, and climbed 12 this week, to 4.50%.
Another sticking point for investors today was global growth concerns after China reported weaker-than-expected exports (-7.5% yr/yr) and imports (-1.9% yr/yr) for March.
Just about everything participated in the broad retreat. The equal-weighted S&P 500 declined 1.6%. Weakness in the semiconductor space had an outsized impact on index losses, though, following news that Chinese telecom companies have been ordered to replace U.S.-made processors in their equipment by 2027. The PHLX Semiconductor Index (SOX) slid 3.3%.
All 11 S&P 500 sectors registered declines ranging from 0.7% (utilities) to 1.8% (materials).
The Q1 earnings reporting period started on a weak note today after JPMorgan Chase (JPM 182.79, -12.64, -6.5%) CEO Jamie Dimon made some cautious-sounding macro comments and the bank left its net interest income guidance for 2024 unchanged from its prior view.
Citigroup (C 59.68, -1.03, -1.7%) and Wells Fargo (WFC 56.47, -0.22, -0.4%) also logged declines after their earnings results.
- Nasdaq Composite: +7.4% YTD
- S&P 500:+7.8% YTD
- S&P Midcap 400: +4.3% YTD
- Dow Jones Industrial Average: +0.8% YTD
- Russell 2000: -1.2% YTD
Reviewing today's economic data:
- March Import Prices 0.4% --- prior 0.3%
- March Import Prices ex-oil 0.1% ---- prior 0.2%
- March Export Prices 0.3% --- prior revised to 0.7% from 0.8%
- March Export Prices Ex-Ag 0.4% --- prior revised to 0.6% from 0.8%
- The preliminary April University of Michigan Index of Consumer Sentiment checked in at 77.9 (consensus 78.8) versus the final reading of 79.4 for March. In the same period a year ago, the index stood at 63.7.
- The key takeaway from the report is the uptick in inflation expectations, which follows form with the larger-than-expected increase in the March Consumer Price Index and the view from various Fed officials that stickier inflation readings mean the Fed can be patient before cutting rates.
Looking ahead, Monday's economic calendar features: March Retail Sales (prior 0.6%) and Retail Sales ex-auto (prior 0.3%) at 8:30 ET; February Business Inventories (prior 0.0%) and April NAHB Housing Market Index (prior 51) at 10:00 ET.