The S&P 500 index fell 1.6% last week, led by the technology sector, as consumer sentiment dropped to a three-year low. This marks the index’s first weekly loss since the week ended Oct. 10. The index is up 14% this year.
Economic readings have been sparse for the past month as the government shutdown has delayed multiple reports. Preliminary results from one report that did come in last week – U.S. consumer sentiment as measured by the University of Michigan – showed consumer sentiment fell to the weakest level in more than three years amid concerns about the shutdown’s impact on the economy.
The main sentiment index dropped for a fourth consecutive month to 50.3 in November from 53.6 in October, the lowest reading since June 2022. The consensus was for a 53 print in a Bloomberg poll.
The government shutdown officially became the longest ever on Wednesday. Some federal employees have been furloughed and key economic data was delayed, including Friday’s nonfarm payrolls report.
The technology sector had the largest percentage drop of the week, falling 4.2%, followed by a 1.7% loss in communication services, a nearly 1.6% decline in consumer discretionary and a 1.1% slip in industrials.
Super Micro Computer (SMCI) had the largest percentage drop in the technology sector, with its shares falling 23%. The company reported fiscal Q1 adjusted earnings and revenue below analysts’ mean estimates and forecast fiscal Q2 adjusted earnings per share below the Street view, even as the company raised its fiscal 2026 net sales guidance.
Still, a number of sectors rose on the week. Energy advanced 1.5%, followed by a 1.3% rise in health care and a 1% increase in real estate. Consumer staples, financials, utilities and materials also edged higher.
The gainers in energy included Targa Resources (TRGP), which reported Q3 net income up from the year-earlier period and above analysts’ mean estimate. The company also priced a public offering of $750 million of 4.35% senior notes due 2029 and $1 billion of 5.4% senior notes due 2036. The offerings were priced at 99.938% and 99.92% of the notes’ face value, respectively. Shares rose 12%.
Earnings reports this week are expected from companies including Cisco Systems (CSCO), Walt Disney (DIS) and Applied Materials (AMAT).
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