Wall Street ended the week on a mixed note, with the S&P 500 barely moving and the Dow edging up slightly. However, the Nasdaq composite slipped. Overall, it was the third consecutive week of losses for Wall Street. The S&P 500 lost over 2% for the week, along with other US indexes.
August has been a challenging month for the stock market, as it has given back a significant portion of its gains from the first seven months of the year. One of the factors contributing to this is the rapid increase in yields, which has made investors reconsider the valuation of stocks. Critics had previously warned that the market had risen too far, too quickly. Technology and other high-growth stocks, known as the “Magnificent Seven,” have been under pressure due to the perception that they are the biggest losers in a higher interest rate environment. Some of these stocks have already declined more than 10% from their earlier highs this year. For example, Microsoft, Meta Platforms, and Tesla experienced declines on Friday.
On a positive note, Ross Stores reported better-than-expected results for the latest quarter, leading to a 5.1% increase in its stock price. Applied Materials also exceeded profit expectations, resulting in a 4.1% rise in its stock. However, Estee Lauder fell 2.5% despite reporting stronger profit and revenue due to a lower profit forecast for the upcoming fiscal year, which fell short of Wall Street’s estimates.
In conclusion, the stock market’s performance in recent weeks has been impacted by several factors, including rising yields and concerns about overvaluation. However, there are still companies like Ross Stores and Applied Materials that are delivering positive results and outperforming expectations. Investors will need to closely monitor market trends and company announcements to make informed decisions.
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