US stocks retreated overnight with the S&P 500 closing down 0.2% as the US completed its 9th consecutive day of strikes on Iran. Elsewhere, US equities finished mixed overnight, with the Dow falling 0.6% while the Nasdaq rose less than 0.1% after rallying more than 1% intraday. The Dow underperformed as losses in heavyweight constituents, including Apple (-2.6%) and Tesla (-1.9%), weighed on the index, while financials edged lower after a good run.
The Nasdaq proved more resilient, supported by a rebound in semiconductor stocks after last week’s sharp sell-off. The Philadelphia Semiconductor Index rose by +0.6%, led by AMD (+2.3%) after expanding its Azure partnership with Microsoft, Alphabet (+1.8%) on reports it is developing a new AI efficiency chip, and Micron (+5%), SanDisk and Seagate recovering from double-digit losses. However, the chip rally faded into the close as renewed concerns over AI valuations and Middle East tensions reined in gains.
- We wouldn’t be surprised to see the S&P 50 retest the 7200 support as geopolitical uncertainty weighs on risk sentiment.
MM remains bullish towards the S&P 500 around 7400
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