U.S. stocks experienced mixed results last week, as geopolitical tensions and corporate earnings reports influenced market movements. The stock market faces a critical week ahead, with key earnings releases and economic data expected to shape investor sentiment.
The S&P 500 remained mostly flat, while the Nasdaq showed slight losses. However, the Dow Jones Industrial Average dropped significantly. This decline was driven by disappointing earnings reports from UnitedHealth and Nvidia. UnitedHealth lowered its full-year forecast after a rough quarter. As a result, its stock fell more than 20%, which weighed heavily on the broader market.
Nvidia also struggled, experiencing a nearly 7% drop in value. The company faced new U.S. trade restrictions on AI chip exports to China. These restrictions caused Nvidia’s market capitalization to fall below $2.5 trillion. The company has lost over $250 billion in market value since the announcement of tighter trade measures.
Despite these setbacks, there were some bright spots in the market. Hertz saw its stock soar by more than 3% after Bill Ackman, CEO of Pershing Square, disclosed a significant investment in the rental car company. This move signals confidence in Hertz’s recovery post-pandemic. Additionally, Eli Lilly’s stock jumped 3% after its weight-loss pill passed a critical late-stage trial. This success strengthens the company’s position in the growing obesity drug market.
Looking ahead, the stock market faces a critical week with several major companies set to report their earnings. Tesla, Alphabet, Lockheed Martin, Boeing, AbbVie, and Procter & Gamble will all release their financial results. Investors will closely monitor these reports for signs of growth or potential risks.
In addition to earnings, key economic data will also be released. Data on PMI, jobless claims, and the Federal Reserve’s Beige Book will provide further insight into the health of the U.S. economy. As such, this week is crucial for understanding market trends and setting expectations for the months ahead.
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