The S&P 500 (SNPINDEX:^GSPC) fell 0.61% to 6,632.19, the Nasdaq Composite (NASDAQINDEX:^IXIC) dropped 0.93% to 22,105.36, and the Dow Jones Industrial Average (DJINDICES:^DJI) slipped 0.26% to 46,558.47 as surging oil prices pressured equities.
Energy and other defensive pockets outperformed while cyclicals lagged today. Ollie’s Bargain Outlet (NASDAQ:OLLI) gained following yesterday’s Q4 earnings. Micron Technology (NASDAQ:MU) increased on positive commentary ahead of next week’s earnings.
AI delays weighed on Meta Platforms (NASDAQ:META) as investors reacted to reports that the roll out of its Avocado would be pushed to May. Adobe (NASDAQ:ADBE) fell by 7.58% to close at $249.32 after announcing CEO Shantanu Narayen would step down during yesterday’s earnings.
The S&P 500 posted its a third consecutive week of losses. Crude oil prices approached $100 a barrel due to continued disruptions in the Strait of Hormuz. High oil costs put pressure on banks, materials, and consumer cyclicals. As the conflict in Iran approaches its second week, investors are preparing for further upsets.
Rate cuts are unlikely to happen when the Federal Reserve meets next week. Data from the Bureau of Labor Statistics today showed job openings rose in January. Consumer spending rose slightly at the start of the year. However, data collected before the conflict began only gives part of the picture.
Figures released today show consumer sentiment hit a three-month low. This is an indication of mounting concern about increased energy and gasoline prices. For investors, a focus on long-term goals helps offset the backdrop of fear and volatility.
Before you buy stock in S&P 500 Index, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $508,607!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,122,746!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 188% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
