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Major averages retreat despite NVIDIA’s earnings and rising rate-cut expectation

The stock market finished the week lower, with the S&P 500 (-2.0% WTD), Nasdaq Composite (-2.7% WTD), and DJIA (-1.9% WTD) retreating beneath their 50-day moving averages after several days of choppy trading.

Smaller-cap indexes were more resilient, with the Russell 2000 (-0.8% WTD) and S&P Mid Cap 400 (-0.7% WTD) posting relatively modest declines. Mega-cap growth lagged, reflecting continued caution among investors around the largest names.

NVIDIA faced its own selling pressure despite delivering strong earnings beat, which fostered a sharp reversal of early gains on Thursday. The stock finished the week down 2.8%. The broader information technology sector (-4.7% WTD) led losses, while consumer discretionary (-3.3% WTD) also lagged. By contrast, healthcare (+1.8% WTD), communication services (+3.0% WTD), and consumer staples (+0.8% WTD) provided pockets of strength, as investors rotated into sectors viewed as more defensive or insulated from the recent AI and mega-cap volatility.

Friday’s session offered a partial reprieve as comments from New York Fed President John Williams lifted expectations for a December rate cut. The major averages finished near session highs, and mid- and small-cap stocks outperformed, with the Russell 2000 (+2.8% Friday) and S&P Mid Cap 400 (+2.4% Friday) rebounding more sharply. Even so, the week’s results underscore that the market remains in a risk-off posture, with mega-cap and tech leadership still fragile.

Overall, the week reflected a market balancing between optimism for potential Fed easing and caution over stretched valuations and recent momentum unwind. While rate-cut chatter offered intermittent relief, broader weakness in tech and mega-cap stocks weighed on the major averages, leaving the market in a state of ongoing rotation and selective strength.

  • S&P Mid Cap 400: -0.7% WTD
  • Russell 2000: -0.8% WTD
  • DJIA: -1.9% WTD
  • S&P 500: -2.0% WTD
  • Nasdaq Composite: -2.7% WTD

 

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Data and rates used were indicative of market conditions as of the date shown and compiled by Briefing.com. Opinions, estimates, forecasts, and statements of financial market trends are based on current market conditions and are subject to change without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer, or recommendation to purchase or sell a security. S&P 500 Index is a market index generally considered representative of the stock market as a whole. The index focuses on the large-cap segment of the U.S. equities market. Each company’s security affects the index in proportion to its market value. NASDAQ Composite Index is a market value-weighted index that measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ stock market. Dow Jones Industrial Average is a widely used indicator of the overall condition of the stock market, a price-weighted average of 30 actively traded blue chip stocks, primarily industrials, but also includes financial, leisure and other service-oriented firms. Russell 2000 Index measures the performance of the smallest 2,000 companies in the Russell 3000 Index of the 3,000 largest U.S. companies in terms of market capitalization. MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

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8076115.23 (Exp. 3/26)

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