Last week, US technology stocks experienced a serious setback, causing the NASDAQ and S&P 500 indices to fall for six consecutive days. The NASDAQ index fell by more than 5% throughout the week, and the S&P 500 index fell more than 3% in a week. This is the biggest weekly decline since the Bank of Silicon Valley went out of business. Meanwhile, the Dow Jones Industrial Average reversed the market and rose two times in a row.
Chip stocks in particular, Nvidia plummeted 10% in a week, the biggest weekly decline in four years, while the “demon stock” Ultra Micro (SMCI) in the AI sector also plummeted 23%. Netflix fell 9% after the earnings report was released, the biggest drop in more than two years. In addition, Tesla cut prices in various markets around the world, and its stock price fell 14% throughout the week, including price adjustments for its fully automated driving (FSD) package in the US and Canada, which fell by more than 30%.
Furthermore, geopolitical risks in the Middle East have eased, which has led to a decrease in demand for safe-haven assets such as US bonds, and ten-year US bond yields have rebounded slightly after experiencing a dive. The US dollar index turned lower, while the yen regained all previous gains. Gold showed mixed performance in the midst of fluctuations, while Bitcoin briefly rebounded nearly $6,000 after falling below $60,000 in the intraday period.
In the energy market, crude oil prices rose for a while and then fell, but eventually closed up slightly, falling at least 3% throughout the week. Furthermore, the Federal Reserve notes in its Financial Stability Report that inflation is still the biggest risk right now, while pointing out that the leverage ratio of hedge funds has reached its highest level since 2013. In the commodity market, the price of tin in London rose by nearly 5%, creating a new figure in nearly two years...