Major US stock indices closed lower during the day and lower during the week. This week’s decline is the fifth weekly decline in a row. The S&P decline is the worst in 4 years.
A look at the closing levels shows:
- The Dow Jones Industrial Average is -793.78 or -1.73% at 45166.33.
- The S&P fell -108.49, or -1.67%, to 6,368.67.
- The Nasdaq fell -459.72 points, or -2.15%, to 20,948.36.
For the trading week:
- Dow Jones Industrial Average fell -0.90%
- S&P index fell -2.12%
- NASDAQ -3.23%
From recent highs, the Dow Jones and Nasdaq are down more than 10%.
- The Dow Jones Industrial Average is down -10.58% from its January high
- S&P index fell -9.05%
- The Nasdaq index fell by 12.72%.
As a point of comparison in 2025, the corrective movement from the February high to the April-May low saw:
- Dow Jones Industrial Average fell -18.74%
- S&P fell -21.35%
- The Nasdaq index fell by 26.48%.
Looking at the weekly chart of the major indices, the Dow Jones Industrial Average has reached a 38.2% retracement of the upward move from the April low at 45202.60, and is also testing a swing zone near 45073.63. The price is trading at its lowest level since September 2025.
For the S&P, it is still above the 38.2% retracement level at 6174.38 and also the swing level between 6147 and 6212. That area is about 3% to 3.5% away. Another bearish week could bring prices close to this level next week.
For the Nasdaq, the price remains above the 38.2% retracement of the upward move from the April low of 20,491.86. This falls within the swing zone between 20,204 and 20,560 (see yellow area on the chart below). The bottom of the swing zone is about 3.4% away from current levels.
Once again, the corrective declines from last year were much larger than what would be expected if the above support levels were reached and held. So there is room to roam if the market continues to be pushed by the inability to resolve the war in Iran, and rising oil prices continue to pressure economies and growth potential.
