Wall Street experienced a mixed start to the week, with technology stocks weighing down the Nasdaq 100 and S&P 500 indices. However, blue-chip stocks in the Dow Jones Industrial Average reached new all-time highs during the morning session in New York. This dynamic reflects a cautious market sentiment amidst escalating global geopolitical risks.
Oil prices surged by 3%, fueled by the escalating tensions between Israel and Hezbollah in the Middle East, coupled with supply disruptions in Libya. A government faction in Libya has halted oil production, contributing to the rising prices. The Dow reached 41,420 points around 10:30 a.m. E.T., marking new record highs before retreating slightly. By midday trading in New York, it had advanced by only 0.1%.
Small-cap stocks managed to book modest gains, with the Russell 2000 up 0.3%. However, within the broader tech sector, semiconductors were the weakest segment. The iShares Semiconductor ETF (SOXX) dropped 2.3%, likely anticipating NVIDIA Corp.’s (NVDA) highly anticipated earnings report, scheduled for release after the close on Wednesday.
Treasury yields remained broadly steady, while the U.S. dollar attracted some safe-haven demand, gaining ground against all major currencies. In the commodities market, gold and silver prices held steady, copper edged up 0.3%, and natural gas prices dropped over 3%, continuing their decline for a fourth consecutive session. Bitcoin (BTC/USD) fell 1% to $63,613.
Here’s a breakdown of major indices and their performance:
*
Russell 2000:
2,232.07 (up 0.3%)*
Dow Jones:
41,221.87 (up 0.1%)*
S&P 500:
5,620.72 (down 0.2%)*
Nasdaq 100:
19,547.44 (down 0.9%)According to Benzinga Pro data:
* The SPDR S&P 500 ETF Trust (SPY) was 0.1% lower to $561.33.
* The SPDR Dow Jones Industrial Average (DIA) rose 0.3% to $412.75.
* The tech-heavy Invesco QQQ Trust Series (QQQ) fell 0.8% to $476.06.
* The iShares Russell 2000 ETF (IWM) inched 0.3% higher to $220.95.
* The Consumer Staples Select Sector SPDR Fund (XLP) outperformed, by 0.6%.
* The Technology Select Sector SPDR Fund (XLK) lagged, down by 1%.
PDD Holdings Inc. (PDD) plummeted 29% after reporting weaker-than-expected quarterly results and revenue guidance. Petroleo Brasileiro SA (PBR) rallied over 6% after Morgan Stanley upgraded the Brazilian state-run oil company to Overweight, raising the price target for Petrobras’ American Depositary Receipts shares from $18 to $20.
This dynamic market environment showcases the impact of geopolitical tensions and individual company performance on the overall market sentiment. Investors are navigating a complex landscape, closely watching developments in both the global political arena and the earnings season.
