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How major US stock indexes fared Firday, 6/13/2025

How major US stock indexes fared Firday, 6/13/2025

Yahooa day ago

Oil prices leaped, and stocks slumped on worries that escalating violence following Israel's attack on Iranian nuclear and military targets could damage the flow of crude around the world, along with the global economy.
The S&P 500 sank 1.1% Friday and wiped out what had been a modest gain for the week. The Dow Jones Industrial Average dropped 769 points, and the Nasdaq composite lost 1.3%.
Crude prices jumped roughly 7% because Iran is one of the world's major producers of oil and fighting in the region could disrupt the flow.
Treasury yields rose with worries about inflation.
On Friday:
The S&P 500 fell 68.29 points, or 1.1%, to 5,976.97.
The Dow Jones Industrial Average fell 769.83 points, or 1.8%, to 42,197.79.
The Nasdaq composite fell 255.66 points, or 1.3%, to 19,406.83.
The Russell 2000 index of smaller companies fell 39.59 points, or 1.8%, to 2,100.51.
For the week:
The S&P 500 is down 23.39 points, or 0.4%.
The Dow is down 565.08 points, or 1.3%.
The Nasdaq is down 123.13 points, or 0.6%.
The Russell 2000 is down 31.74 points, or 1.5%.
For the year:
The S&P 500 is up 95.34 points, or 1.6%.
The Dow is down 346.43 points, or 0.8%.
The Nasdaq is up 96.03 points, or 0.5%.
The Russell 2000 is down 129.65 points, or 5.8%.

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Google Cloud grew sales 28% with its operating margin expanding to 17.8% from 9.4% a year ago. The high-margin Google advertising business continued to produce strong growth as well. Nvidia felt the pain of restrictions on sales of its GPUs to China, but the company still managed to produce very strong earnings growth last quarter. Without the impact of the write-off in excess inventory and purchase obligations of its H20 GPUs designed for China and the related tax impact, earnings growth would have been 57% . Though Tesla is the only one showing weakness at the moment, the rest of the group's outperformance isn't going to last forever. While analysts expect the group to continue beating the rest of the market in terms of earnings growth through the end of 2025, difficult comparisons and better performance among the rest of the stocks in the S&P 500 could present a challenge for 2026. As such, analysts currently forecast first-quarter 2026 earnings growth of 10.2% for the Magnificent Seven as a group, but the rest of the 493 companies will generate an average of 10.3% earnings growth. That forecast has some important implications for investors, even if it ultimately proves inaccurate (as is almost always the case for forecasts a year out). The first is investors will need to be more discriminating among the seven stocks going forward. We've already seen Tesla stock falter, and Apple, despite beating expectations, has seen its stock hit hard by tariff pressure. Even if investors expect strong results from one of the businesses going forward, valuation will matter more as earnings growth slows down. Alphabet is currently the only member of the group with a forward price-to-earnings ratio below 25 (it sports an extremely attractive 18.5x multiple). The second is that there may be a lot more growth opportunities among the smaller members of the S&P 500. While analysts expect growth for the group to continue trailing the Magnificent Seven through the end of the year, that won't be true of every company. It's possible to find those companies trading at a fair value despite strong growth prospects outside of the Magnificent Seven. Another option is to buy an equal-weight S&P 500 index fund like the Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP). The fund invests evenly across all 500 constituents of the S&P 500, rebalancing on a quarterly basis. That ensures you capture just as much upside from smaller businesses as you do from the biggest companies in the index. As the tide turns and we start to see more parity in the market, investors should expect a stronger showing over the next year (or longer) from smaller names in the stock market. Meanwhile, many of the Magnificent Seven are starting to look expensive relative to their future earnings growth prospects as analysts' expectations come down. 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