Insights

Wall Street experienced a downturn last week. Investors were in a "risk-off" mood as the war in Iran escalated, while AI and semiconductor shares dropped, which dragged the overall market lower. Each of the major market indexes lost value, ending a streak of favorable weekly performances.

Wall Street began last week with a heavy sell-off as investors appeared anxious about the U.S.-Iran war, elevated inflation, and fears of a potential tech correction. However, stocks staged a massive turnaround midweek, driven by easing tensions in the Middle East and the largest initial public offering in U.S. financial history.

Last week's trading session was shortened as the markets were closed on Friday, July 3, in honor of Independence Day.

For just the second time in the last 13 weeks, both the S&P 500 and the NASDAQ recorded weekly losses.

Most markets were closed last Friday in observance of Juneteenth National Independence Day. Wall Street rallied last week as investors displayed optimism over the signing of an initial agreement ending hostilities in the Middle East.

Wall Street began last week with a heavy sell-off as investors appeared anxious about the U.S.-Iran war, elevated inflation, and fears of a potential tech correction. However, stocks staged a massive turnaround midweek, driven by easing tensions in the Middle East and the largest initial public offering in U.S. financial history. Consumer staples and real estate led the market sectors, while information technology and communication services lagged.

For much of last week, stocks continued a rally that appeared headed for another week of gains. However, investors, who had been clinging to the prospect of monetary easing, had those hopes all but dashed after a better-than-expected jobs report (see below) doused any hopes of an interest rate reduction in the immediate future.

Wall Street ended the week with broad gains, record-setting index performances, and a notable shift toward broader market participation beyond tech and AI shares.