The S&P 500 and Nasdaq Composite indices have entered correction territory, with declines exceeding 10% over the past week. The Dow Jones Industrial Average also fell by over 366 points to close at 32,417.59. This market downturn, primarily due to soaring Treasury yields and various economic and geopolitical issues, has caused concern among Americans as it may impact the performance of numerous mutual funds that benchmark against these indices.
Despite the broader market downturn, shares of tech giants Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL) rose last week. Amazon's shares increased by over 6% following positive investor sentiment towards its Q3 update and Q4 forecast. The positive sentiment towards Amazon led to a rise in shares for Microsoft and Apple as well, with Apple set to release its quarterly figures soon.
However, not all tech stocks fared well. Meta Platforms Inc (NASDAQ:META)., Tesla (NASDAQ:TSLA) Inc., Alphabet (NASDAQ:GOOGL) Inc., Nvidia Corporation (NASDAQ:NVDA), and Netflix Inc. (NASDAQ:NFLX) all saw weekly losses. Alphabet witnessed a near 10% slump, Nvidia lost around 2% weekly, while Netflix dipped slightly by 0.7%.
In other sectors, Ford Motor Company (NYSE:F) shares plunged due to a negative quarterly report while Exxon Mobil Corporation (NYSE:XOM) shares also declined following its 'guided' quarterly result. Chevron Corporation (NYSE:CVX) shares fell over concerns about its quarterly figures and its $US53 agreed bid for Hess Corporation (NYSE:HES), registering a weekly loss of more than 13%.
Australia's ASX 200 also saw a decline of 8.4%. Amid these market fluctuations, Gina Rinehart's Hancock Prospecting emerged as a significant stakeholder in Azure Minerals, potentially frustrating SQM's $1.6 billion bid for the same. The proposed merger between Australian Unity Diversified Property Fund and Cromwell Direct Property Fund was abandoned due to volatility in commercial property asset values.
Macquarie Group (OTC:MQBKY) is also set to release weak half-year results.
Despite the recent market correction, financial experts like Ryan Detrick from Carson Group emphasize that such market corrections are normal, transient, and less severe than a bear market. The S&P 500 marked its best first seven-month performance since 1997 from January to July, despite the recent pullbacks.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.