📉 From Peaks to Pullbacks: 5 Must-Know Market Moments From Last Week

The U.S. stock market closed lower on Thursday, marking a tough day for major indexes as investors grappled with mixed earnings, a tech sector slump, and ongoing economic concerns.

Here are the top takeaways you need to know:

1. Markets Lose Momentum After a Promising Rally

After a strong rally on Wednesday fuelled by easing inflation and robust bank earnings, Thursday saw a reversal.

The S&P 500 fell 0.21% to 5,937.34, the Dow Jones Industrial Average slipped 0.16%, and the Nasdaq Composite led the losses with a 0.89% drop. This decline was largely driven by underperforming tech stocks like Nvidia (-2%), Tesla (-3%), and Apple (-4%).

2. Tech Stocks Take a Hit

The "Magnificent Seven" tech stocks, which had a stellar day on Wednesday, faltered. Microsoft was the only stock in the group to hold steady, while others like Alphabet and Tesla dragged the tech-heavy Nasdaq lower. Apple, in particular, experienced its worst day since August, falling 4%.

3. Big Bank Wins Amid Slower Retail Growth

Earnings season kicked off strongly, with 77% of reporting companies beating expectations, according to FactSet.

Morgan Stanley led the way, posting better-than-expected profits and seeing its stock rise 4%. Bank of America also exceeded earnings estimates, though its shares slipped slightly. However, not all results impressed—UnitedHealth fell short of revenue forecasts, with its stock dropping 6%.

Meanwhile, retail sales for December grew by just 0.4%, missing the 0.6% forecast and slowing from November’s 0.7% increase. This weaker-than-expected growth raises questions about consumer spending strength and its potential impact on future earnings reports, especially for consumer-facing industries.

4. Investor Sentiment Dips as Treasury Yields Pull Back

Investor confidence reached new lows, with only 25.4% of respondents in the latest AAII Investor Sentiment Survey feeling bullish about the next six months—the lowest level since November 2023.

Meanwhile, bearish sentiment surged to 40.6%, driven by fears of sticky inflation and uncertainty over Federal Reserve interest rate policies. Adding to the mixed signals, the 10-year U.S. Treasury yield, which had recently hit a 14-month high, pulled back to 4.615%. While this decline offered some relief to equity markets, it underscored lingering concerns about the economy’s trajectory.

5. Oil Stays Strong with a Four-Week Winning Streak

Amid broader market struggles, oil prices showed resilience. WTI Crude is up 2.8% for the week, and Brent Crude has climbed 1.9%, marking four consecutive weeks of gains for both.

Final Thoughts: A Market in Flux

Thursday’s decline reflects a mix of profit-taking, economic uncertainty, and sector-specific challenges. With earnings season heating up and interest rate concerns lingering, investors are carefully watching for signals about what lies ahead. For now, the market appears to be catching its breath after a rollercoaster start to the year.

Last week’s market movements, shaped by tech struggles and financial sector gains, underscore the importance of having the right strategies in a dynamic investing landscape.

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