Today, the stock market has had a bit of a bumpy ride. There was concern about problems in the Middle East and some companies did not make as much money as expected.
The Dow Jones Industrial Average (^DJI) fell just over 0.2%. The S&P 500 (^GSPC) also fell, this time by almost 0.5%. The technology-focused Nasdaq Composite (^IXIC) fell 0.3%. This means that people who invest in these companies may feel a little insecure.
Something happened in the Middle East that worried people. Israel and Palestine, two places in the Middle East, began to blame each other for an explosion at a hospital in Gaza. President Joe Biden then traveled to Israel. But a meeting he was supposed to have with other top leaders was canceled because of the explosion. President Biden said something that made people worry that there could be even bigger problems in the region.
Oil, which is something we use a lot, has become more expensive. One reason is that Iran, a Middle Eastern country, said other countries should stop trading with Israel. This caused the price of crude oil (CL=F) to rise to $88 a barrel. Brent crude oil (BZ=F) rose further to $91 a barrel.
When oil prices rise, things can become more expensive for everyone. This is something that people who decide on interest rates at big banks like the Federal Reserve think about. They have to decide if they need to change interest rates to keep the economy stable.
Yesterday, the stock market didn’t change much after people bought a lot of things in stores. Because of this, some people think that the Federal Reserve could decide to change interest rates soon.
Later that day, two big companies, Tesla and Netflix, said how much money they made. People were very interested in this because they wanted to know if these companies are doing well, especially with interest rates rising.
One company, ASML, which makes machines for computer chips, said it may not sell as many machines in the future. They think this could happen due to some economic uncertainty.
Another company, Nvidia, which also makes computer chips, didn’t fare as well after the U.S. government said it can’t sell some of its specialty chips to China. However, there may be some exceptions to this rule.
As you can see, a lot happened in the stock market today. The problems in the Middle East and the amount of money big companies make can make the market go up and down. It’s like a big roller coaster for people who invest in the stock market.
Also read: New US chip export restrictions send Nvidia shares tumbling