Nasdaq Drops 3.6% in Volatile Week as Tech Shares Lead Pullback

U.S. stock markets closed a volatile week sharply divided across major indexes. The Nasdaq Composite tumble 3.64% over the week to close at 26,370.53, recording its steepest weekly loss in months after erasing nearly 1,000 points. The S&P 500 slid 1.43% for the week to 7,699.50, while the small-cap Russell 2000 dropped 2.43% to 2,738.83. By contrast, the Dow Jones Industrial Average edged higher, advancing 0.93% over the week to finish at 52,134.63.

The market divergence reflected growing weakness in mega-cap technology shares while traditional industrial sectors showed relative stability. Market volatility increased as the Cboe Volatility Index rose to 17.02. In government debt, the 10-year Treasury yield fell 13 basis points on the week to 5.11%. Commodity markets delivered mixed results, as WTI crude oil surged 4.17% weekly to $97.65 per barrel while gold slipped 0.10% to $4,186.50 per ounce.

Traders are watching benchmark support and resistance levels heading into next week, with the S&P 500 testing its 50-day exponential moving average near 7,681.97. Individual company developments also made news, including Lockheed Martin Corporation (NYSE:LMT) delivering a C-130J-30 aircraft to the U.S. Navy for strategic command upgrades, Truist Financial Corporation (NYSE:TFC) reporting third-quarter financial results, Sturm, Ruger & Company, Inc. (NYSE:RGR) seeing an oversubscribed tender offer from Beretta Holding S.A., CLPS Incorporation (NASDAQ:CLPS) reporting full-year revenue growth of 4.7%, and Orvana Minerals Corp. (TSX:ORV) posting full-year gold production that topped guidance.