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The Dow Jones Industrial Average Rebounds Amid Geopolitical Tensions
On Friday, the Dow Jones Industrial Average experienced a significant rebound as tensions between Israel and Iran seemed to ease following Israeli airstrikes overnight. The Dow surged by 211 points, representing a 0.5% increase, to close the day at 37,986. However, the Nasdaq and the S&P 500 ended the week in the red, with the Nasdaq dropping 319 points, a decline of 2%, and the S&P 500 falling by 44 points, approximately 0.9%.
Strong Performance by TSMC in Q2 Sales
Taiwan Semiconductor Manufacturing Company (TSMC) exceeded expectations in its Q2 sales, driven by the booming demand in artificial intelligence (AI) technology from companies like Nvidia and Apple.
Meanwhile, oil markets, which have been volatile for months, showed signs of stabilization. West Texas Intermediate futures saw a 0.23% increase, trading at $82 per barrel, while Brent crude futures rose by 0.06% to $87 per barrel.
Additionally, U.S. mortgage rates reached a new high for the year due to rising inflation concerns. The average rate for a 30-year fixed mortgage hovered between 7.4% and 7.5% during the week, marking its highest level since November of the previous year.
Super Micro Computer and AI Stocks Experience Volatility
Super Micro Computer stock witnessed a sharp decline on Friday, triggering a sell-off in the AI sector. The company announced that it would not pre-announce its results ahead of its scheduled earnings release, causing concern among investors about the company’s performance. Consequently, Super Micro Computer stock plummeted by 23%, emerging as the biggest loser in the S&P 500. This negative sentiment spilled over to other AI stocks, resulting in declines for Nvidia, Micron Technology, and Advanced Micro Devices.
Shares of Paramount Global Surge on Acquisition Rumors
Paramount Global’s stock experienced a notable 13% increase on Friday, propelled by reports of discussions between Sony Pictures Entertainment and Apollo Global Management regarding a potential joint bid to acquire Paramount.
In contrast, Netflix saw a 9.1% drop in its stock price following its first-quarter earnings report, which included a forecast of lower subscriber numbers in the coming quarter due to seasonal factors and the company’s efforts to reduce password-sharing.
American Express Reports Strong First-Quarter Profits
American Express announced a 34% increase in first-quarter profits, attributing the boost to higher card usage and balances by customers. The company’s profit reached $2.44 billion in the first quarter, equivalent to $3.33 per share, surpassing Wall Street’s expectations. Consequently, American Express stock surged by 6.2% by the end of the trading day, while Bank of America and Fifth Third Bancorp also posted gains.
Trump Media & Technology Group Stock Rebounds
After a prolonged downturn, Trump Media & Technology Group stock witnessed a resurgence, reclaiming approximately $1 billion in market value. The positive trend was fueled by the recovery of Trump Media’s Truth Social platform, resulting in a 9.4% increase in the stock price by the end of the day.
Bitcoin Rebounds as “Halving” Event Boosts Prices
Amid turbulent trading days, Bitcoin surpassed the $65,000 mark on Friday morning, driven by the anticipation of its significant “halving” event. This recovery in Bitcoin price brought relief to investors, especially after recent concerns expressed by analysts at major banks like JPMorgan and Goldman Sachs. The positive momentum also extended to the broader crypto market, pushing the global crypto market cap to $2.35 trillion, a 4% increase from the previous day.
Overall, the financial markets experienced a mix of ups and downs, influenced by geopolitical developments, corporate earnings reports, and macroeconomic factors. Investors remained vigilant in navigating the dynamic landscape of global finance.
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