The major U.S. stock indexes experienced a slight retreat at the beginning of the holiday-shortened week, with energy stocks being the exception. The $S&P 500(.SPX)$ , Dow Jones Industrial Average, and $NASDAQ(.IXIC)$ all dipped, while WTI crude oil futures rose amid geopolitical worries following a terrorist attack in Russia.
Despite the pullback, the S&P 500 and Nasdaq are on track for their best first quarter since 2019.
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Key Points
Market Performance: The S&P 500 fell by 0.3%, the Dow Jones Industrial Average declined by 0.4%, and the Nasdaq Composite dropped by 0.3%. Energy stocks, however, saw gains, with the Energy Select Sector SPDR rising by 0.9%.
WTI Crude Oil Prices: WTI crude oil futures increased by 1.6% to $81.93 a barrel amid concerns following a terrorist attack in Russia, contributing to the rise in energy stocks.
Geopolitical Concerns: International worries impacted technology stocks after the European Commission initiated investigations against $Apple(AAPL)$ , $Meta Platforms, Inc.(META)$ , and $Alphabet(GOOG)$ for noncompliance. Additionally, restrictions on chip usage in government devices by China led to declines in shares of $Intel(INTC)$ and Advanced Micro Devices.
Stocks
Corporate News: Boeing announced that CEO Dave Calhoun would step down at the end of 2024 amidst quality concerns, and Qualcomm's former CEO, Steve Mollenkopf, was praised for his leadership during turbulent times.
Market Reaction
- The S&P 500 and Nasdaq retreated, while energy stocks outperformed.
- Large caps lagged behind small caps, with technology and industrials underperforming.
- The VIX rose slightly, reflecting increased market volatility, while Treasury yields remained stable.
Outlook
GameStop and McCormick are set to report quarterly results, and economic data including the Census Bureau's durable goods report for February and the Conference Board's Consumer Confidence Index for March are scheduled for release.
GameStop
- Traders are closely monitoring geopolitical developments and upcoming economic data releases for further market direction.
- Expectations of interest rate cuts by the Bank of England have increased, contrasting with the Federal Reserve and European Central Bank's current stance.
This analysis is for informational purposes only and should not be construed as financial advice. Investors should conduct their own research or consult with a financial advisor before making investment decisions. Trading in financial markets involves risks, and past performance is not indicative of future results.
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