In the world of finance, the stock market is always a rollercoaster ride, with winners and losers emerging every day. This week, the Nasdaq saw some significant losers, while other stocks made big moves midday.
Tesla, the electric vehicle maker, lost nearly 2% after reports of its plans for a low-cost car amid competition from Chinese EV makers. Investors were hoping for the entry-level car to boost growth, but the news didn’t sit well with the market.
On the flip side, Krispy Kreme shares jumped 6% after an upgrade from Piper Sandler, citing a partnership with McDonald’s and an improving narrative. Enphase Energy, however, saw a 5% drop after a downgrade from Citi, citing limited corporate liquidity and weaker trends in the U.S.
Meanwhile, the Dow Jones Industrial Average bounced back on Friday, jumping over 400 points during midday trading. The rally came after a stronger-than-expected March jobs report, with the index still on track to close the week down roughly 2%.
All S&P 500 sectors traded up on Friday, with communication services and information technology leading the gains. Despite the broad advance, most sectors are still on pace to end the week with losses, with energy and communication services being the only sectors in the green.
In the retail sector, the SPDR S&P Retail ETF is on track for its worst week since March 2023, down over 5% week to date. Companies like Walgreens, Leslie’s, Foot Locker, Ulta, and Burlington are all down more than 10% for the week.
Investor sentiment is also at its limit, according to Bespoke Investment Group, which could lead to weaker returns in the future. The high bullish sentiment levels historically result in lackluster returns, with stocks typically falling slightly over the next week.
Overall, the stock market is experiencing ups and downs, with some companies thriving while others struggle. Investors are keeping a close eye on the market, looking for opportunities and bracing for potential challenges ahead.
