Wall Street closed this Monday in mixed territory during a volatile session. The tech-heavy Nasdaq index led the losses, dropping 1.33% to 26,166 points, weighed down mainly by the innovation and AI sector.
SpaceX Stock Suffers Historic Drop in the Market
The major trigger of the session was the performance of Elon Musk’s aerospace firm. SpaceX stock continued its negative streak after retreating more than 3% last week, suffering a 16.4% plunge at the close of today’s session.
This technical movement coincides with the company’s official announcement regarding its first issuance of senior unsecured debt bonds, a refinancing strategy aimed exclusively at qualified institutional investors.
The bearish trend also dragged down other tech giants in the market:
- Alphabet: -5 %
- Amazon: -4,75 %
- Microsoft: -3 %
- Meta: -2 %
Conversely, semiconductor firm Micron managed to break away from the trend with a 6.8% rebound ahead of the publication of its financial results this Wednesday.
Performance of the Dow Jones and S&P 500
Unlike the tech sector, moderate optimism in other industries allowed the Dow Jones Industrial Average to rise 0.29%, reaching 51,172 units. Meanwhile, the S&P 500 followed the Nasdaq’s downward trend with a more moderate decline of 0.37%, closing at 7,472 points.
Macroeconomic Factors: Inflation, Interest Rates, and Iran Tensions
The market remains cautious ahead of key macroeconomic data. This Wednesday, the Consumer Price Index (CPI) for May will be released, a critical metric for the Federal Reserve’s (Fed) next moves, which recently kept interest rates unchanged in the 3.5% to 3.75% range.
Market Note: Investors are also closely monitoring diplomatic progress between the United States and Iran, who have established a committee to outline a peace roadmap within a 60-day window.
This geopolitical scenario directly impacted commodities. West Texas Intermediate (WTI) crude oil fell 2.3% to $74.82 per barrel following the U.S. authorization for the sale of Iranian crude. In the metals sector, gold dropped to $4,208 per ounce (-0.89%) and silver fell to $65.30 (-1.54%), while the 10-year Treasury bond yield climbed to 4.509%
Source: Yahoo Noticias
