The three major U.S. stock indices all rebounded on March 7, reversing course just a day after a steep decline.
However, the Nasdaq entered correction territory, and the S&P 500 fell below its 200-day moving average.
While the S&P 500 recovered its 200-day average, it still suffered a weekly decline of over 3%, the largest drop since last September.
U.S. President Donald Trump’s ongoing trade war casts a shadow over Wall Street.
Worst week in six months
As the trading day progressed, investor sentiment improved, allowing the major indices to close in positive territory.
The Dow Jones Industrial Average gained 222.64 points (0.52%) to finish at 42,801.72, while the S&P 500 added 31.68 points (0.55%) to close at 5,770.20.
The Nasdaq climbed 126.97 points (0.70%) to end at 18,196.22.
However, the week’s performance was dismal.
The Nasdaq plummeted 3.5% for the week, while the S&P 500 fell 3.1%—its steepest weekly decline since September.
The Dow also plunged by 2.4%.
The CBOE Volatility Index (VIX), called Wall Street’s “fear gauge,” dropped 1.50 points (6.03%) to 23.37 but remained above 23.
M7 stocks show mixed results
The market-moving power of the M7 big tech stocks continued to wane.
While the major indices rose, the M7 did not lead the gains. Instead, it showed mixed performance.
Tesla dropped over 1% during the session but trimmed its losses to close at $262.67, down $0.78 (0.30%).
Microsoft (MS) fell $3.58 (0.90%) to $393.31, while Meta Platforms dropped $2.27 (0.36%) to $625.66.
Amazon also declined, losing $1.45 (0.72%) to close at $199.25.
On the other hand, three M7 stocks gained.
Nvidia rose $2.12 (1.92%) to $112.69, Apple climbed $3.74 (1.59%) to $239.07, and Alphabet finished up $1.51 (0.88%) at $173.86.
Earnings results drive stock movements
Quarterly results played a significant role in determining stock performance.
Broadcom, a custom AI semiconductor maker, surged $15.51 (8.64%) to $194.96 after reporting better-than-expected earnings and an optimistic outlook after the previous day’s close.
Clothing retailer Gap also increased $3.67 (18.84%) to $23.15, fueled by strong quarterly results and an optimistic forecast.
In contrast, AI server company HP Enterprise (HPE) tumbled $2.15 (11.97%) to $15.81 as its reported earnings and forecast were below expectations.
Walgreens soars, and Intuitive Machines crashes
Walgreens Boots Alliance, the largest U.S. pharmacy chain, increased by $0.79 (7.45%) to $11.39.
The surge came after private equity firm Sycamore Partners agreed to acquire Walgreens for $23.7 billion, or $11.45 per share.
In contrast, rocket launch company Intuitive Machines plummeted $2.49 (22.11%) to $8.77.
The stock’s nosedive followed news that the company’s lunar lander, Athena, had difficulty landing near the Moon’s south pole the previous day.
