Wall Street mixed, first weekly decline after 4 consecutive weeks of gains

At the end of the trading session on Friday, November 7 (early morning of November 8, Vietnam time), the US stock market recorded a divergence between the main indexes, although this was the first week in the past 4 weeks that the main stock indexes all decreased.

Investors watch for US economic signs as markets retreat, tech wobbles

Specifically, the S&P 500 rose slightly by 0.1% (+8.48 points) to close at 6,728.80 points, while the Dow Jones Industrial Average (Dow) rose by 74.80 points (+0.2%), reaching 46,987.10 points. However, the Nasdaq Composite index went in the opposite direction, falling slightly by 0.2% (-49.46 points), closing at 23,004.54 points. The Russell 2000 index for small-cap companies rose by 0.6% to 2,432.82 points, reflecting a partial recovery in small-cap stocks.

Despite a somewhat stable weekend session, the market overall was still down for the week. Specifically, the S&P 500 fell about 1.6%, the Dow fell 1.2%, the Nasdaq fell a sharp 3%, and the Russell 2000 fell 1.9%. However, since the beginning of the year, the indexes still recorded positive gains, with the S&P 500 up about 14.4%, the Dow up 10.4%, the Nasdaq up 19.1%, and the Russell 2000 up 9.1%.

Although the Nasdaq closed lower, the S&P 500 and Dow ended Friday with slight gains, reflecting a shift in investor sentiment. However, concerns about the economy, including the prolonged government shutdown and overvaluation of technology stocks, still kept investors cautious. The slight correction in the major indexes after a long period of strong gains has signaled the market is entering a correction phase.

A resolution to the government shutdown would improve sentiment, especially amid concerns about tech valuations, said Terry Sandven, chief strategist at US Bank Wealth Management. Tech stocks have led the market rally in recent months, but are now a source of concern as investors begin to reassess their lofty valuations.

The November consumer sentiment report from the University of Michigan showed a sharp decline, with the index falling to its lowest level in more than three years. This is a sign of concern about the economic situation, especially the impact of the government shutdown. This also affects expectations about the US Federal Reserve's policies, as the lack of official economic data has increased market uncertainty.

The US stock market remains in a state of uncertainty. Investors are in a wait-and-see mode, assessing developments in macro factors ranging from the business results of large technology companies to the Fed's policy. This creates uncertainty in the market and causes the major stock indexes to tend to move sideways or fluctuate wildly in the coming weeks.

Meanwhile, the third-quarter earnings season continues, with 446 companies in the S&P 500 reporting better-than-expected earnings. Of those, 83% have reported better-than-expected earnings. However, the unevenness across sectors has caused the market to be sharply divided, with companies like Block and Take-Two Interactive posting sharp declines after missing earnings expectations.

The market will continue to face uncertainties from many sides. Investors will continue to closely monitor three key factors: (1) employment and consumer data, as reports have been delayed due to the government shutdown; (2) quarterly results from the remaining major technology companies; and (3) the Fed’s interest rate policy, particularly rate cuts and the central bank’s message on the economic future.

Given the current situation, the US stock market may continue to witness corrections and increased caution next week, as new economic information will influence investors' decisions.

Source: https://thoibaonganhang.vn/pho-wall-trai-chieu-tuan-giam-dau-tien-sau-4-tuan-tang-lien-tiep-173280.html