The landscape of US equity markets has seen a notable retreat as benchmark indexes fell for the fourth consecutive week on Friday, amid escalating concerns regarding a potential global trade war. However, a remedy surfaced with a positive turn on Friday due to a tentative agreement in Congress to finance government operations until September 30, providing some respite to investors. The Nasdaq Composite Index concluded trading on Friday at 17,754.09, a significant drop from the previous week's close of 18,196.20.
Meanwhile, the S&P 500 wrapped up the week at 5,638.94, marking a decline from its previous value of 5,770.20. The Dow Jones Industrial Average didn't fare any better, descending to 41,488.19 from 42,801.72. Investor sentiment was dampened further as the Russell 2000 index, which includes smaller companies often perceived as more vulnerable to economic fluctuations, also witnessed a downturn.
The index ended at 2,044.1, having slipped from 2,075 the week prior. In other economic developments, consumer sentiment, as measured by a survey from the University of Michigan, fell for the third consecutive month, dropping to 57.9 in March from 64.7 recorded the previous month. Such figures raise concerns about consumer confidence, which is a pivotal component of economic health. On the bond market front, US Treasury yields experienced an uptick on Friday.
The yield on the 10-year Treasury note increased by 4.2 basis points, reaching 4.32%, while the two-year Treasury yield rose by 6.8 basis points, concluding at 4.02%. These movements indicate market reactions amidst ongoing economic uncertainties. Amidst the dim market outlook, technology giant Apple has shown resilience, with its stock price climbing nearly 2%.
This came despite the fact that the anticipated enhancements to its Siri personal assistant powered by artificial intelligence are not expected to be rolled out before May, possibly delaying customer expectations further. In a brighter note for the tech sector, Intel also saw a nearly 2% increase in its stock, following the announcement that Lip-Bu Tan would become the next CEO of the company, a move that has prompted optimistic forecasts regarding the company’s future direction. Additionally, in the commodities market, West Texas Intermediate crude oil settled at $67.18 per barrel, reflecting a $0.63 increase.
This rise occurred following Russia's hesitance on the conditions for a proposed 30-day ceasefire in Ukraine, which has complicated the prospects of sanction terminations on Moscow. As geopolitical tensions continue to impact the commodity markets, investors will need to stay vigilant in these volatile times..