USA
The major indexes recorded widely varying results over the week, with the Dow Jones Industrial Average recording its biggest weekly loss (-2.33%) since early April, while the technology-heavy Nasdaq Composite continued its recent march into record territory. The broad S&P 500 Index was roughly flat, while small-cap stocks lost ground.
A primary factor driving the market’s divergence was the gain in shares of artificial intelligence chipmaker NVIDIA, now the third-largest company in the S&P 500 by market capitalization. The good news for NVIDIA did not translate into broader gains for the market. Nearly 90% of the stocks in the S&P 500 closed lower in the Thursday session.
Europe
STOXX Europe 600 Index ended 0.45% lower, as questions emerged about the pace of potential interest rate cuts this year. Major stock indexes were mixed. Italy’s FTSE MIB lost 2.57%, while France’s CAC 40 Index declined 0.89%. Germany’s DAX was little changed. The UK’s FTSE 100 Index slid 1.22%.
Japan
Japanese equities finished the week lower, with the Nikkei 225 Index falling 0.36% and the broader TOPIX Index experiencing a marginal decline. Equities were supported by upbeat economic data releases and a stellar earnings update from U.S. chip giant NVIDIA, which helped lift Japanese tech stocks. However, all gains were lost on Friday as Japanese indexes tracked Wall Street lower after U.S. data pushed the potential for a U.S. interest rate cut further out. It was a notable week for Japanese bond markets as 10-year government bond yields reached the 1.0% level for the first time in 11 years.
China
Chinese stocks retreated as fears that rates would remain elevated in the U.S. offset optimism about Beijing’s latest measures to shore up the ailing property sector. The Shanghai Composite Index declined 2.07%, while the blue chip CSI 300 lost 2.08%. In Hong Kong, the benchmark Hang Seng Index fell 4.83%.
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