All major U.S. equity indices opened the week with losses, as traders shifted to safe-haven bonds and gold amid concerns affecting the health of the U.S. manufacturing activity.
Volatility surged back into the market on Wednesday, with the CBOE Volatility Index (VIX) spiking 9% after hitting nearly three-year lows last week, fueled by fresh upticks in Treasury bond yields.
Wall Street resumed trading after the Memorial Day holiday with a familiar trend, as major chipmaker stocks significantly outperformed the broader market.
Technology stocks surged on Friday, rebounding sharply after Thursday’s decline, as investor confidence in the artificial intelligence-driven rally remained high.
Performance in April 2024: Utilities lead, real estate lags. S&P 500, Nasdaq 100, Dow Jones Industrial Average, small-cap and large-cap indices all decline.
A sentiment of risk aversion looms over the markets during Wednesday’s trading session, triggering midday losses across the board in stocks and cryptocurrencies and prompting a flight towards bonds, as investor confidence remains dampened by geopolitical and economic risks.
Investors remain on edge as geopolitics continue to shape market trends, with Israel mulling a response to Iran while the U.S. and key allies explore further sanctions against Tehran.