The S&P 500 (^GSPC 1.23%) fell 0.28% to 6,861.89, breaking a three-day winning streak. Geopolitical tensions and weaker confidence weighed on the Nasdaq Composite (^IXIC 1.47%), which slipped 0.31% to 22,682.73, and the Dow Jones Industrial Average (^DJI 1.37%), which dropped 0.54% to 49,395.16.
Market movers
Walmart (WMT +0.86%) fell after issuing weaker-than-expected guidance. This put pressure on Dow futures and retail peers. DoorDash (DASH 2.64%) and Medical Properties Trust (MPT +4.71%) gained on upbeat outlooks and revenue. Corcept Therapeutics (CORT 4.21%) dropped double digits after losing a key patent appeal.
What this means for investors
Stocks retreated today as geopolitical tensions ratcheted higher and traders re-evaluated any hopes of imminent Fed rate cuts. The expectation of further PCE inflation data tomorrow added to the cautious mood.
Crude oil prices spiked amid heightened US-Iranian uncertainty. Gold prices also edged upwards as investors looked to safe-haven assets. Energy stocks also gained, with ExxonMobil (XOM +1.85%) and Chevron (CVX +3.21%) both in the green.
Tech concentration concerns persist, as the Nasdaq remains dominated by a narrow group of leaders. Megatech stocks saw mixed trading, with Nvidia (NVDA 1.36%) pulling back slightly after yesterday’s gains. Software stocks, such as Salesforce (CRM +2.25%) and ServiceNow (NOW 2.01%) continued to falter on lingering AI disruption fears.
Some commentators compare today’s bull market to the situation in the late 1990s, fuelling fears of a stock market crash. For investors, it’s important to manage risk and watch upcoming data for further warning signals.
