The S&P 500 fell sharply Friday, with all major U.S. indexes closing lower.
Market Highlights
- Nasdaq led losses, down over 2%.
- S&P 500 sectors like tech and financials dropped more than 2%.
- Energy sector was the sole gainer, supported by crude oil prices rising over 4%.
Economic Indicators
The January U. Michigan preliminary sentiment fell slightly below estimates at 73.2 but showed rising inflation expectations.
Treasury Yields Surge
The U.S. 10-Year Treasury yield hit its highest level since November 2023, reaching approximately 4.73%.
Key Technical Levels
- The S&P 500 traded near 5,820, testing its 20-week moving average at 5,840.
- The index hasn’t closed below the 20-week moving average since November 2023.
- A gap from November 6 could fill at 5,783.44, with further support at the November 4 low of 5,696.51.
Global Markets
- Euro STOXX 600 dropped about 0.4%.
- Dollar, gold, and bitcoin gained, reflecting a flight to safety.
Energy Gains Amid Crude Rally
Crude oil surged over 4%, driven by concerns over potential supply disruptions from additional sanctions on Russia.
Key Takeaway
The S&P 500’s decline underscores growing economic uncertainty, with rising yields and energy gains shaping market sentiment.
