The S&P 500 fell for a third straight day on Friday as investors kept a close eye on tensions in the Middle East and speculated about the Federal Reserve’s next moves. The index dropped 0.22% to 5,967.84. The Dow Jones Industrial Average edged up 0.08% to 42,206.82, while the Nasdaq Composite slid 0.51% to 19,447.41.
Semiconductor stocks were particularly weak after a Wall Street Journal report suggested tighter regulations could be coming for chip makers. The major indexes had started the day stronger after Fed Governor Christopher Waller hinted at a possible rate cut as soon as July. “I think we’re in the position that we could do this and as early as July,” Waller said.
But Fed Chair Jerome Powell had said earlier in the week that the central bank was still watching the data and was in no hurry to change interest rates. President Donald Trump continued to pressure the Fed to cut rates, saying Powell had cost the U.S. “hundreds of billions of dollars” by waiting. Geopolitical risks also made the market jittery.
Reports said Israeli Prime Minister Benjamin Netanyahu had ordered strikes on “strategic targets” in Iran. President Trump is considering direct U.S. military action against Tehran as well, which could further raise global tensions. “With so much uncertainty going on in this world, who really wants to go long over the weekend?” said Sam Stovall, chief investment strategist at CFRA Research.
He noted the S&P 500 is still trading about 3% below its recent 52-week high, showing how hard it has been to break through previous peaks. For the week, the S&P 500 lost about 0.2%. The Dow eked out a 0.02% gain, while the Nasdaq rose 0.2%.
Stocks react to global uncertainties
Several stocks hit new 52-week highs on Friday, and nine reached all-time highs. Some of those were trading at record levels since their IPOs, including one from 1997, one from 1995, and a few others from more recent years.
On the flip side, Molson Coors and Constellation Brands touched new 52-week lows. Morgan Stanley analysts predicted the Fed’s 2025 stress test will be “less strenuous” than last year’s. This could mean smaller drops in most banks’ Common Equity Tier 1 ratios, suggesting stress capital buffers may stay flat or dip slightly from a year ago.
In crypto, ether ETFs saw strong inflows for a sixth straight week, even though ether’s price is down for the month. Ether ETFs had weak demand at first compared with bitcoin ETFs but have bounced back and gained investors’ interest. JPMorgan has given Arista Networks a buy rating on the dip, saying the company’s potential is underappreciated as the AI networking market evolves.
Circle’s stock jumped 18% after the Senate passed a key stablecoin bill called the GENIUS Act. Circle has surged more than 500% from its lows thanks to the bill’s approval and ongoing legislative process. By midday, several companies saw big moves.
GXO Logistics soared over 11% after boosting its full-year earnings guidance and naming a new CEO. CarMax climbed 6% on strong first-quarter results that topped analyst estimates. Building stocks like GMS spiked on reports of a bidding war involving an all-cash offer from billionaire Brad Jacobs’ firm and a private bid from Home Depot.
GMS shares skyrocketed 28% to over $100, lifting other related stocks too.