The stock market struggled on Friday with major stock indexes near session lows. JPMorgan and Intel were among the notable losers in the Dow Jones. However, the Nasdaq composite experienced the most significant selling pressure, particularly with Nvidia and Arm stocks recording declines.
Oil prices surged over 2% to $87 a barrel due to Middle East tensions and fears of escalating conflict between Israel and Hamas. The possibility of an attack from Iran added to the anxiety in the energy markets.
The Wall Street Journal reported that China instructed its largest telecom carriers to phase out foreign chips, leading to a decline in Intel and AMD shares. Nvidia also faced selling pressure, testing its 10-week moving average after a breakout earlier this year.
In terms of earnings reports, attention was on JPMorgan, Wells Fargo, and Citigroup, with JPMorgan flashing a sell signal after dropping below its 50-day line.
The broader market showed losses across the board, with the Nasdaq composite down 1.6% and the Nasdaq 100 down 1.7%. Several tech stocks like Micron, ASML, and Broadcom also lagged.
Despite the market challenges, insurance stocks like Progressive and Allstate outperformed, alongside companies like Occidental Petroleum and Newmont Mining. Cameco, a recent addition to the Leaderboard model portfolio, saw gains before getting pulled down with the broader market.
Overall, the stock market remains resilient even as Treasury yields rise, reflecting shifting investor expectations regarding interest rates and inflation. As the market continues to evolve, staying informed and analyzing trends is crucial for successful investing.
