Wall Street experienced a tumultuous day on Friday, with a risk-off sentiment prevailing as investors grappled with the implications of high producer inflation figures. The tech-heavy Nasdaq 100 lagged behind, while small caps and energy stocks managed to eke out gains amidst the broader market decline.
The CBOE Volatility Index (VIX) mirrored Thursday’s gains, rising by 5%, indicating increased market volatility and uncertainty. Treasury yields remained stable compared to Thursday’s closing marks, but the week saw a significant surge of 20-30 basis points across all Treasury maturities, marking the worst week for bonds since mid-October 2023. The iShares 20+ Year Treasury Bond ETF (TLT) was down nearly 3% as a result.
Cryptocurrencies, often considered risky assets, were also affected by the market turbulence. Bitcoin (BTC/USD) plummeted by 5%, dropping to $68,000 on Friday. In contrast, commodities outperformed, with the Invesco DB Commodity Index Tracking Fund (DBC) set to deliver its strongest performance since early January 2024.
Gold held steady at $2,160 per ounce, while silver saw a 1.6% increase, reflecting a broader surge in industrial metals like copper, which neared a one-year high. Oil remained stable at $80 per barrel but recorded a weekly gain of over 4%, trading at its highest levels since early November 2023.
In terms of major US equity indices and ETFs, the Russell 2000, Dow Jones, S&P 500, and Nasdaq 100 all experienced declines, with the tech-heavy index leading the losses. The SPDR S&P 500 ETF Trust (SPY), SPDR Dow Jones Industrial Average (DIA), and Invesco QQQ Trust (QQQ) all ended the day lower, according to Benzinga Pro data.
Sector-wise, the Energy Select Sector SPDR Fund (XLE) and Materials Select Sector SPDR Fund (XLB) were the only positive performers for the day, while the Technology Sector SPDR Fund (XLK) lagged behind, down 1.7%.
In terms of stock movers, Southern Copper Corporation (SCCO) saw a significant rise of 5.4% on Friday and an 18.8% gain for the week. On the other hand, companies like Jabil Inc. (JBL), Zillow Group (Z), Compass Inc. (COMP), Redfin Corp. (RDFN), and Adobe Inc. (ADBE) experienced declines after missing revenue estimates or providing weaker guidance.
Geron Corp. (GERN) surged by 85% following positive news from the U.S. Food and Drug Administration, while CoStar Group Inc. (CSGP) rose over 7% on the back of strong performance by Homes.com.
Overall, Friday’s market performance reflected a mix of uncertainty, volatility, and divergent trends across different asset classes and sectors. Investors are closely monitoring economic data and market developments for cues on future market direction.
