Stocks Stabilize Late but Fail to Reclaim Key Technical Levels

U.S. equities extended the prior session’s losses but managed to recover from deeper intraday declines following late geopolitical developments. The S&P 500 slipped 0.3%, the Nasdaq Composite fell 0.3%, and the Dow Jones Industrial Average declined 0.4%, with all three indices finishing modestly lower. Notably, the S&P 500 was unable to close back above its 200-day moving average, a key technical level that remains in focus for investors.

The market briefly turned positive late in the session after comments from Israeli Prime Minister Benjamin Netanyahu suggested progress in the conflict with Iran. According to reports, Netanyahu stated that Iran’s ability to enrich uranium and produce ballistic missiles has been neutralized and indicated that the conflict could end sooner than expected. He also noted that Israel is supporting U.S. efforts to reopen the Strait of Hormuz.

Those remarks triggered a pullback in oil prices, helping equities recover from their lows. While crude oil settled slightly higher on the day, it moved lower following the comments, easing some of the pressure that had weighed on the market earlier.

Energy markets had initially pushed higher after reports that Iranian missile strikes caused significant damage to a liquefied natural gas facility in Qatar, reinforcing concerns about supply disruptions in the region.

Despite the late rebound in equities, sector performance remained uneven. The energy sector was the only S&P 500 group to finish in positive territory, rising 1.5% as oil prices remained elevated overall.

Technology stocks showed relative resilience. The sector finished near unchanged levels after spending most of the day in negative territory, supported by strength in select names such as Ciena, which continued its strong weekly performance. Semiconductor stocks also held up relatively well, with the broader chip index posting a modest gain. However, Micron Technology declined following its earnings report, as investors locked in profits and expressed concerns about capital spending plans.

Financial stocks also stabilized by the close, finishing near flat as major banks showed relative strength.

On the downside, the materials sector led declines, pressured by a sharp drop in gold prices. Newmont Corporation was among the worst performers as precious metals retreated significantly. Fertilizer producers such as The Mosaic Company also weakened amid ongoing uncertainty surrounding shipping routes in the Middle East.

Consumer discretionary stocks extended recent losses, with Tesla acting as a notable drag on the sector.

Interestingly, smaller-cap stocks outperformed. The Russell 2000 rose 0.7%, while the Dow managed to close slightly higher, reflecting a degree of resilience following the late-session rebound.

Overall, the session highlighted the market’s continued sensitivity to geopolitical developments. While late headlines helped lift stocks off their lows, the inability of the S&P 500 to reclaim its 200-day moving average suggests that investor conviction remains limited. With rate-cut expectations shifting further out following the latest Federal Reserve meeting and energy markets still volatile, near-term price action is likely to remain headline-driven.

Our FTinvest 11 model portfolio declined 0.68% to close at 947.59, continuing its recent downward trend and marking another step lower from the all-time high of 1,039.51. The portfolio has now experienced a sustained pullback over the past several sessions, reflecting persistent market pressure.

Despite the ongoing correction, FTinvest 11 remains well above its levels at the start of the year and retains a solid year-to-date gain. The portfolio’s disciplined, value-driven approach continues to guide its positioning as it navigates this period of volatility while maintaining a long-term focus.