Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes.
THE AUDIO BRIEF
THE RUNDOWN
Global stock markets faced significant downward pressure this week, driven by escalating conflict in the Middle East and shifting interest rate expectations.
U.S. indices retreated as a sharp rise in Brent crude prices, which surged 6.2% to $109.84 per barrel, heightened inflation concerns and lowered the probability of Federal Reserve rate cuts. The S&P 500 fell 2.9%, while the tech-heavy Nasdaq Composite dropped 3.2% as massive AI capital expenditures and legal charges against Super Micro Computer executives weighed on the sector. The Russell 2000 slipped 2.6%, and the Dow Jones Industrial Average declined 2.9%. Canada’s S&P/TSX Composite saw the steepest decline at 4.7%, largely due to its heavy exposure to the basic materials sector as gold and silver prices plummeted. Although Canadian energy stocks rose alongside oil, they were unable to offset broad losses in mining and financial sectors following the Bank of Canada’s decision to hold rates steady.
RISERS
APA Corporation is an energy company that rose 13.23% this week, bolstered by rising global oil prices and positive production outlooks.
Baker Hughes provides oilfield services and saw a 9.35% increase as increased drilling activity and energy demand supported broader sector gains.
Apollo Global Management is an asset manager that rose 8.26% following strong quarterly earnings and favorable trends in the private equity market.
FALLERS
Supermicro is an AI server manufacturer that fell 35.56% after executives were charged with illegally smuggling Nvidia chips to China.
The Mosaic Company is a fertilizer producer that dropped 14.75% as U.S. sanctions were lifted on Belarusian potash, increasing global supply and pricing pressure.
Newmont is a gold mining corporation that declined 13.06% due to falling gold prices, rising interest rates, and higher production cost guidance.
