25. Weekly Market Recap: Key Movements & Insights
🎢 S&P 500's Wild Ride: A Week of Ups and Downs
Markets Tumble Amid AI Fears and Fed Uncertainty, Focus Turns to Earnings and Data
It was a volatile week on Wall Street. The S&P 500 swung sharply, dragged lower by concerns over an AI sector sell-off, mixed tech earnings, and a hawkish Federal Reserve. Markets also grappled with geopolitical tensions after the White House announced new tariffs, sparking a Friday sell-off.
The S&P 500 plummeted over 2% on Monday following news that Chinese AI firm DeepSeek developed a cost-efficient large language model (LLM) rivaling OpenAI’s technology. The revelation spooked investors, triggering fears of an AI bubble collapse. Nvidia, a bellwether for AI demand, plunged more than 18% weekly. Tech earnings from the "Magnificent 7" added uncertainty, with results failing to inspire confidence.
On Wednesday, the Federal Reserve held interest rates steady but struck a cautious tone, briefly sending stocks lower before a midday rally. The rebound proved fleeting, however, as Friday’s surprise White House…
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