The S&P 500 slipped 0.2% on Friday, its third straight loss, while the Nasdaq fell 0.5% and the Dow added 35 points as investors weighed the prospects of Federal Reserve rate cuts against rising geopolitical tensions in the Middle East. Fed Governor Waller’s suggestion that rate cuts could arrive as early as July contrasted sharply with Chair Powell’s more cautious, data-dependent stance. Semiconductor stocks like Nvidia and TSMC, dropped over 1% following reports that the US may revoke export waivers, raising concerns over global chip supply chains.
Geopolitical uncertainty deepened after President Trump delayed a decision on potential US military involvement in the Israel-Iran conflict, even as Israel intensified its strikes on key Iranian targets. Friday’s “triple witching” expiration added volatility, prompting a rebound in shorter-dated Treasuries and driving two-year yields down four basis points. On the week, the S&P 500 fell 0.2%, while the Dow was flat and Nasdaq added 0.2%.
