In a turbulent week marked by significant volatility in the stock market, the major indices faced notable declines as investors navigated a complex economic landscape. The Nasdaq 100 fell by 3.8% over the last four days, closely followed by the Nasdaq Composite, which decreased by 3.6%. The Russell 2000 index slipped 3.5%, while the Dow Jones Industrial Average saw a decline of approximately 3%. The S&P 500 and NYSE Composite also reported downturns of 2.9% and 2.6%, respectively. Despite these drops, all indices remain within 10% of their 52-week highs, with the NYSE Composite standing just 4% shy of its peak reached on November 12.
Thursday’s trading session marked a significant increase in market activity, achieving the highest volume since the tariff-related turbulence in early April. Within this environment, the consumer discretionary sector emerged as the weakest performer, falling 4.9% over four days. Walmart’s quarterly earnings report highlighted a shift in consumer behavior, indicating that shoppers are becoming increasingly selective. Despite this trend, Walmart’s shares surged 6.5%, bringing them within 2% of their high recorded in mid-October. The State Street SPDR S&P Retail ETF also suffered, declining 3.4% and remaining 13% below its September high.
Among Dow stocks, Home Depot led the pack in underperformance, experiencing an 8.3% drop week-to-date and falling 24% from its 52-week high last November. Boeing and Salesforce also faced challenges, with shares declining 8% and 7.5%, respectively, the latter of which is now nearly 40% from its high set in December 2024. Conversely, Walmart stands out as the Dow’s top performer this week, closely followed by Johnson & Johnson, which hit a new high with an increase of 3.6%, and Merck, advancing 2.2% but still 9.6% away from its December peak.
In the cryptocurrency space, Bitcoin crossed below the $86,000 mark and has now dropped over 20% in the month. Ethereum and Solana reported similar declines, both down by 28%. Stocks associated with cryptocurrency, such as those linked to Michael Saylor’s strategy, showed significant losses, with one stock down nearly 39% year-to-date and 67% from its last November high.
In defense news, Israel’s Ministry of Defense announced a multibillion-dollar contract to expand its Iron Dome missile defense system, collaborating with Rafael, a company owned by the Israeli government that partners with RTX in manufacturing interceptors. Shares of RTX climbed 7.5% recently, nearing their October high. Concurrently, Israel’s government declared intentions to bolster domestic defense production systems, a move that aligns with its strategic defense objectives.
On a different note, Nvidia’s shares fell 3.15% on Thursday following disappointing earnings, distancing themselves by 15% from the late October high. The stock had initially shown promise with a 5% increase earlier that day before the downturn. AMD also struggled, dropping almost 8% and ceding 23% from its October peak. The SMH chip ETF followed suit with a 4.2% decline, marking a 13% dip from its October high.
As the market gears up for Friday’s session, analysts will be closely monitoring consumer spending trends and the stock performance of major retailers, particularly with the holiday shopping season only 35 days away.
