Dow Drops To Record Worst Week In Six Months Amid Elevated Yields, Oil — NVDA, TSLA, SPCX, ONON In Focus

An interest rate hike amid soaring energy costs and rising inflation concerns has weighed on the Dow.

• The S&P 500 ended Friday 0.2% higher, while the Nasdaq 100 added 0.7% and the Dow Jones Industrial Average fell 0.2%.
• Treasury 10-year yields settled the week above 5%. 
• U.S. crude hovered above $100 a barrel. 

US stock indices ended the week lower as investors digested the first rate hike since 2023, elevated oil prices and pressure from rising yields. 

The S&P 500 ended Friday 1.1% lower, while the Nasdaq 100 added 1.7% and the Dow Jones Industrial Average rose 0.6%. The Russell 2000, which tracks stocks with small market capitalizations, rose about 0.6%.

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) gained 0.3%, and Invesco QQQ Trust (QQQ) ended Friday 0.7% higher, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) was down 0.2%.

Meanwhile, the VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) added above 2%, respectively, tracking gains in Nvidia (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO) and Micron Tech (MU). The broader Vanguard Information Technology ETF (VGT) rose about 0.7%.

Retail sentiment on Stocktwits for QQQ, SPY, and DIA was ‘bearish,’ with ‘high’ message volumes. 

US Market Drivers

Index	Move	Close
Dow Jones Industrial Average	-0.2%	51,682.64
S&P 500	0.2%	7,650.50
Nasdaq 100	0.7%	29,644.17

Elevated Treasury yields continued to pressure equities, with the 10-year yield touching its highest point since July 2007 earlier in the week as it crossed 5%. It closed up nearly 6 basis points to 5.006% on Friday. The iShares 20+ year Treasury ETF (TLT) eased about 0.6% on Friday. 

U.S. crude oil closed the week mostly flat while staying above $100 per barrel. On Friday, West Texas Intermediate crude fell 1.58% to $100.30 per barrel, while Brent crude dropped 0.91% to $103.87 per barrel.

Friday’s trading capped off a mixed week for major equity benchmarks. The Dow fell 1.7%, marking its third consecutive weekly decline and its steepest drop since March. The S&P 500 dipped roughly 0.1%, whereas the tech-heavy Nasdaq rose 0.7%.

“Nothing has changed on the fundamental side to lead investors to think that oil prices will decline in a significant way or that yields will tumble over the intermediate term,” Matt Maley at Miller Tabak told Bloomberg. “We could still see a significant jump in volatility.” 

Key Trending Stocks

Artificial intelligence developer Anthropic has postponed its anticipated market listing until November, according to an exclusive report by The Wall Street Journal.  

London-based AI data center company Nscale has filed publicly for an initial public offering (IPO) in New York to acquire the infrastructure needed to meet the global demand for artificial intelligence compute power. 

Tesla (TSLA) was in the spotlight on Friday after Barclays said the EV maker could deliver more vehicles than expected in the third quarter and added that its autonomous driving technologies could boost margins.

NASA on Friday awarded SpaceX (SPCX) three additional missions to continue regular crew transportation to the International Space Station 

On Holding AG (ONON) signed French football star Kylian Mbappé as an athlete partner and global ambassador. 

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