Fedspeak vs. war deal: Here are the things that drove this week's stock market
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- The S&P 500 rose 0.9% for its 11th winning week in the past 12 and the Nasdaq gained 2.4%, rebounding from a Wednesday selloff that briefly threatened the streak
- The Federal Reserve held rates steady but spooked markets by projecting possible rate hikes to fight stubborn inflation, sending the S&P 500 down 1.2% on Wednesday — its worst first 'Fed day' under a new chair since 1994
- New Fed Chairman Kevin Warsh announced a series of task forces to reshape the agency and committed to delivering the central bank's 2% inflation goal during his first post-meeting press conference
- Intel surged 10.6% on Thursday and hit records after President Trump said Apple would partner with the chipmaker on US-based chip design; Arm hit an all-time high and rose 15.4% for the week while the iShares Semiconductor ETF gained nearly 7.3%
- The U.S. and Iran signed a memorandum of understanding to extend their ceasefire and reopen the Strait of Hormuz, though planned follow-up talks on Friday did not occur — the agreement gives both sides 60 days to forge a final peace deal
- U.S. crude dropped nearly 10% for the week and the national average for unleaded gasoline fell below $4 per gallon, prompting the Investing Club to add to its Capital One position
- Big tech lagged chipmakers as Microsoft shed 2.9% for the week while Meta (+1.8%), Amazon (+2.5%), and Alphabet (+2.3%) posted modest gains
Why it matters: Inside a 60-day U.S.-Iran window that already cut crude nearly 10% and gas under $4/gallon, consumer-facing plays like Capital One stand to benefit — while chip conviction surged (Arm +15.4%, Intel +10.6% on Trump's Apple tie-up). The Fed's surprise openness to rate hikes, meanwhile, revived inflation fears in the worst 'Fed day' S&P drop under a new chair since 1994.
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