U.S. stocks weekly: Dunked
Repeats from Friday with no changes to text. Updates chart
** S&P 500 .SPX loses 2.1% as Powell douses hopes for Dec rate cut .N
** Weakness sets in just as SPX nears big barrier just above 6k; indeed, bulls suddenly in no hurry as post-election rally stalls
** Nasdaq composite .IXIC races to new highs, and for once, not gasping for "breadth," but then reverses; by Fri, Nasdaq advance/decline line hits new lows, IXIC ends down 3.1% for the week
** Nearly all sectors take a plunge: Healthcare drenched most, while just Energy and Financials stay afloat
** Healthcare .SPXHC plummets 5.5%. Drugmakers extend declines after Trump picks RFK Jr to lead top US health agency. Vaccine maker Moderna MRNA.O sheds 21% on week
AbbVie ABBV.N declines as schizophrenia drug fails in mid-stage studies
For the week, Nasdaq Biotech index .NBI sinks 10%
** Materials .SPLRCM melt 3.3%. Might gold's XAU= recent stumble turn into a real tumble? ARCA gold bugs index .HUI craters ~8%
** Tech .SPLRCT descends 3.2%. Applied Materials AMAT.O falls as fiscal Q1 rev forecast signals weak spending outside AI chips
Semiconductor index .SOX submerges nearly 9%
** Industrials .SPLRCI sag 2.1%. Defense, government contractor stocks extend recent slide as investors eye Trump's proposed DOGE (Department of Government Efficiency). Leidos LDOS.N and General Dynamics GD.N fall 19% and 7%, respectively, on the week
S&P 500 Aerospace & Defense index .SPLRCAERO loses 5%
** Communication Services .SPLRCL slip 2.1%. Though Disney DIS.N jumps and is top SPX performer as 'Deadpool & Wolverine' stars in quarterly beat. DIS notches 16.2% weekly gain for best such showing in 24 years
** Consumer Discretionary .SPLRCD dips 1.1%. Though Home Depot HD.N up after forecasting smaller drop in annual same-store sales
And Coach parent Tapestry TPR.N hits over decade-high after pulling $8.5 bln deal for Capri CPRI.N
** Financials .SPSY climb 1.4%. Charles Schwab SCHW.N gains on strong client asset growth in October
** Meanwhile, Bitcoin BTC= soars above $90,000 as it extends post-election gains, amid volume surge
** SPX performance YTD:
SP 500 2024 YTD THROUGH NOVEMBER 15 https://fingfx.thomsonreuters.com/gfx/buzz/zjvqnnnjmpx/SP%20500%202024%20YTD%20through%20Nov%2015.jpg
(Lance Tupper and Terence Gabriel are Reuters market analysts. The views expressed are their own)
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