The S&P 500 index fell 3% last week — the third straight week of decline — led by the technology and consumer discretionary sectors, as investors digested a mixed round of quarterly financial results and escalating turmoil in the Middle East.
The S&P 500 is down 5.5% this month, but it is still in positive territory for 2024 with a year-to-date rally of 4.1%.
Last week’s drop came amid a mixed round of corporate results. Among the S&P 500 components that released quarterly reports, 79% had better-than-expected earnings, while only 55% had better-than-expected revenue, according to Bloomberg data.
Adding to investor concerns, Chicago Fed President Austan Goolsbee said progress made by the Federal Reserve in easing inflationary pressures has “stalled,” and it “makes sense” to extend the pause rather than cut interest rates.
Turmoil in the Middle East, where Israel launched a retaliatory strike on Iran, also weighed on the market as investors worried about potential impacts on oil supplies and energy prices.
The technology sector has the largest percentage drop, sliding 7.3%, followed by a 4.5% drop in consumer discretionary, a 3.6% decline in real estate and a 3.2% skid in communication services. Other sectors posting declines included industrials, energy, materials and health care.
Three sectors climbed this week. Utilities rose 1.9%, consumer staples increased 1.4% and financials edged up 0.8%.
This week, earnings reports are expected from a number of heavyweight companies. Economic data due will feature Q1 gross domestic product as well as the latest consumer price index, a closely watched inflation reading. Other reports include March new home and pending home sales as well as durable goods orders.
Get instructions on how to enable our Flash News Briefing skill to your Amazon devices:
Clik here to view.
