Wall Street Falls, Heads for Weekly Loss as Tensions with Iran Exacerbate Inflation Concerns

Market Update - March 13, 2024

US Equities

US stocks declined on Friday, with the major indexes down for the week as investors monitored developments in the war on Iran and its potential effects on the global oil supply. The Dow Jones Industrial Average fell 0.07% to 46,644.85, while the S&P 500 declined 0.47% to 6,641.41. The Nasdaq Composite dropped 0.97% to 22,103.03.

GDP and Economic Indicators

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The Commerce Department revised fourth-quarter GDP growth downward to 0.7%, a significant decline from its previous estimate. The Personal Consumption Expenditures (PCE) report showed little movement in the US Federal Reserve's preferred inflation gauge, while other data indicated weakening demand for durable goods.

Sector Performance

Among the 11 major sectors of the S&P 500, communication services were down the most. Utilities enjoyed the largest percentage gain. The S&P 500 financial sector fell 3.3% on the week, amid mounting concerns over credit quality.

Company News

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Adobe fell 5.3% after the company announced that its longtime CEO, Shantanu Narayen, will leave his role once a successor is appointed, renewing worries around its strategy as it grapples with AI disruption. Meta Platforms slid 4.1% after a report said the social media behemoth has postponed the release of its artificial intelligence model "Avocado" to at least May.

Market Volatility

Declining issues outnumbered advancers by a 1.62-to-1 ratio on the NYSE, while the Nasdaq saw a 1.84-to-1 ratio. The S&P 500 posted 13 new 52-week highs and 8 new lows, while the Nasdaq Composite recorded 29 new highs and 167 new lows.