Stock Market Today: US Stocks Fall as Oil Surges, ‘Magnificent 7’ Shed $300 Billion

The US stock market continued its downward trend on Friday, with the S&P 500 (^GSPC) declining by 1.7% and marking its longest losing streak since 2022. The ‘Magnificent 7’ megacap stocks, which include Apple, Microsoft, Amazon, Alphabet, Facebook, NVIDIA, and Tesla, shed over $300 billion in market capitalization.

Oil Prices Surge

Oil prices continued to rise on Friday, with Brent crude (BZ=F) trading above $106 a barrel and West Texas Intermediate (CL=F) topping $100. The surge in oil prices has raised concerns about the impact on the global economy and has led to a decline in stock markets.

Trump Postpones Deadline for Iran

President Trump has postponed the deadline for Iran to comply with US demands, giving the country an additional 10 days to respond. The move has been seen as a shift in Trump’s tone towards Iran, with some analysts interpreting it as a sign of a potential path towards de-escalation.

Market Sell-Off Continues

Despite Trump’s postponement of the deadline, the market sell-off continued on Friday, with the Dow Jones Industrial Average (^DJI) dropping by 1.7% and the Nasdaq Composite (^IXIC) declining by 2.1%. The sell-off has been driven by concerns about the impact of the surge in oil prices on the global economy and the potential for further escalation in the Middle East.

Tech Stocks Fall

Tech stocks have been particularly hard hit by the sell-off, with NVIDIA, Amazon, and Tesla all falling. The decline in tech stocks has been driven by concerns about the impact of the surge in oil prices on the sector and the potential for further disruption from the conflict in the Middle East.

Bond Yields Rise

Bond yields have risen on Friday, with the 10-year Treasury (^TNX) yield jumping to 4.46%. The rise in bond yields has been driven by expectations of higher inflation and a more hawkish Federal Reserve.

Bitcoin Falls

Bitcoin (BTC-USD) has fallen by 4% to around $66,650 on Friday, erasing nearly all the gains accumulated during the Iran war. The decline in bitcoin prices has been driven by a shift in investor sentiment towards risk-off assets.

Gold Rebounds

Gold (GC=F) has rebounded by 3% on Friday, trading around $4,540 per ounce. The rebound in gold prices has been driven by a shift in investor sentiment towards safe-haven assets.

Carnival Corporation Cuts Outlook

Carnival Corporation (CCL) has cut its full-year outlook, citing the impact of higher fuel prices. The company has forecast adjusted earnings of $2.21 per share, down from a previous forecast of $2.48 per share.

Microsoft Stock Falls

Microsoft Corp. (MSFT) stock has fallen by 24% in the first quarter, on pace for its biggest loss since the fourth quarter of 2008. The decline in Microsoft stock has been driven by concerns about the impact of the surge in oil prices on the tech sector and the potential for further disruption from the conflict in the Middle East.

Unity Software Exits Ad Business

Unity Software (U) has announced that it is exiting its non-strategic ad business, sending its shares up by 12% in premarket trading. The company has also announced preliminary first-quarter results that have boosted expectations.

OpenAI’s ChatGPT Ads Pilot

OpenAI’s ChatGPT ads pilot has crossed the $100 million annualized revenue mark within six weeks of launch, according to a company spokesperson. The ads pilot has been seen as a significant development in the company’s efforts to generate revenue from its AI chatbot.