Traders are in charge of the floor at the New York Stock Exchange in Newark City on May 31, 2023.
Semiconductor shares lingered, and the Nasdaq Composite ended lower on Friday, marking the end of its second consecutive losing week in 2023.
A decrease of approximately 0.6% in the tech-heavy Nasdaq to 13,644.85, caused by a selloff in semiconductor stocks such as Advanced Micro Devices, Nvidia, and Micron. Additionally, the VanEck Semiconductor ETF (SMH) experienced its worst week since October 2022, with 5.2%) losses.
The S&P 500 experienced a 0.1% decline, ending at 4,464.05. The Dow Jones Industrial Average gained 0.3% by closing at 35,281.40. Chevron and Merck & Co. both saw increases of 2.1% and 1.8%, respectively, which helped boost the 30-stock index.
The S&P 500 and Nasdaq experienced a decline of approximately 0.3% and 1.9%, respectively, during the week. This was followed by their second consecutive losing streak, which was surpassed by Apple’s announcement of its fourth consecutive loss in December 2022.
Among the three major averages, the Dow is an exception, moving up by 0.6% this week.
There was much to delight investors earlier in the week.
The consumer price index, which is a significant measure of inflation for markets and the Federal Reserve, was slightly lower than expected in July. Prices increased by 3.2% annually, falling short of the Dow Jones consensus estimate of 3.3%.
The CPI reading displayed some sluggishness. The core CMI, which does not account for volatile food and energy prices, increased by 4.7% from the previous year.
In other areas, Disney experienced a rebound after its earnings report on Wednesday. Although shares were down in the Friday session, they were up by 3.2% on the week. This represents the highest weekly gain for the entertainment giant since March.
Inflation figures released on Friday added to the complexity of the situation. The July producer price index, which indicates the amount that wholesalers pay for raw goods, increased by 0.3% from the previous month. According to economists polled by Dow Jones, there was a slight increase of 0.2% month over month in this area.
Following a strong performance in the first half of the year, the stock market has been hit by erratic movements this week. The three major indexes are all down from their previous lows in August.
Greg Bassuk, CEO of AXS Investments, noted that investors are attempting to achieve greater consistency in economic data. However, the mixed results suggest that there is more potential for volatility in the future.