Losses in the U.S. Stock Market Last Week

The U.S. stock market recorded sharp losses at the end of the week ending on February 16.
For the first time in five weeks, the Nasdaq Technology Index fell by 1.54% or 276.42 points, settling near 15,775.65 points.

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U.S. Stocks
Biden
Key Data

U.S. Stocks

The S&P 500 index declined by 0.42% during the week, but it still maintains a record level of 5000 points for the fourth consecutive week since the beginning of the year. This performance is attributed to strong quarterly and annual earnings results of companies listed in the index, coupled with market optimism towards artificial intelligence applications. On the other hand, the Dow Jones Industrial Average recorded losses of 43.70 points, a decrease of 0.11%, settling at 38,623.64 points by the end of the week.

Biden

Rebuilding the Semiconductor Industry in the United States: The Biden Administration’s Plan

Through a law approved in 2022, allocating $39 billion in direct grants to semiconductor manufacturing companies and $75 billion for loan guarantees and facilitation of borrowing operations, the U.S. government aims to bring semiconductor manufacturing companies back to the United States. Talks include providing $10 billion in support for Intel, marking the largest support for semiconductor companies and their integration into U.S. territories. This plan seeks to regulate dependence on companies in East Asia. Intel’s stock experienced a 1.1% increase in Friday’s trading, recovering from significant declines earlier this year. The stock had previously dropped by 13%. Will the United States succeed in dominating the semiconductor industry during this decade?

Key Data

Key Market Data Anticipated This Week

In the coming week, attention will be directed towards the minutes of the Federal Open Market Committee meeting, with investors focusing on signals regarding the timing of the Federal Reserve’s interest rate cuts. From the U.S. market, Purchasing Managers’ Index reports in the services and manufacturing sectors will provide an assessment of the economy’s performance this month. Additionally, the U.S. markets will witness quarterly earnings reports from companies such as Home Depot, Walmart, Etsy, NVIDIA, Moderna, and Berkshire Hathaway.

In Europe, investors will await reports from the European Central Bank for signals about expectations for changes in interest rates. Data on Purchasing Managers’ Indices is expected to show a slight contraction in the European economy. Meanwhile, the Central Bank of Turkey is expected to keep interest rates unchanged. The week also includes Eurozone inflation data, business sentiment in France, and Germany’s Gross Domestic Product.

Losses in the U.S. Stock Market Last Week

Losses in the U.S. Stock Market Last Week

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