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News Topical, Digital Desk : US markets fluctuated on Friday. March inflation data, which was in line with expectations, and a sharp rise in chip stocks supported the market. However, reports of escalating tensions from both sides during the US-Iran talks have cast a pall of caution on the market. Tehran has stated that a ceasefire in Lebanon is necessary for peace talks to proceed, raising uncertainty over the first round of US-Iran talks scheduled for Saturday.
How was the initial market?
The Nasdaq declined from its previous highs in early trading. The Dow Jones Industrial Average is trading down more than half a percent. The S&P 500 is also trading with limited losses. Despite today's slowdown, the S&P 500 and Nasdaq are on track for their biggest weekly gains since May, while the Dow is on track for its sharpest weekly gain since June. The technology sector provided the biggest support to the market. The S&P 500 IT index rose 1%, led by chip companies. Nvidia and Broadcom shares rose 2.7% and 5.7%, respectively, while the Philadelphia Semiconductor Index reached a record high of 8,926.95. However, weakness in financial stocks (down about 1.2%) limited the market's gains. Declines in Goldman Sachs and Travelers weighed on the Dow. In terms of market breadth, in early trading, advancing shares outnumbered decliners by a 1.06:1 ratio on the NYSE, while the Nasdaq ratio was 1.37:1. However, this ratio later declined.
The S&P 500 recorded 19 new 52-week highs and 22 new lows, while the Nasdaq Composite recorded 94 new highs and 101 new lows.
What are the experts' opinions?
According to Eric Schiffer, Chairman of The Patriarch Organization, investors are currently positioning themselves, and a concrete agreement between the US and Iran could lead to a significant rally in the market. According to Schiffer, demand for AI hardware remains strong, and companies will continue to purchase chips on a large scale, which could lead to continued growth in this sector.
The technology sector provided the biggest support to the market. The S&P 500 IT index rose 1%, with chip companies leading the way. Shares of Nvidia and Broadcom rose 2.7% and 5.7%, respectively, while the Philadelphia Semiconductor Index reached a record high of 8,926.95.
In terms of economic data, US consumer prices recorded their fastest increase in nearly four years in March, driven by rising oil prices due to the war and the impact of tariffs.
According to LSEG data, traders now assume the US Federal Reserve will not change interest rates this year. Expectations of two rate cuts have now diminished.
According to another survey, US consumer confidence reached a record low in early April, and people expect inflation to rise over the next 12 months.
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