What’s News in Markets: Gold Tarnishes, Not-So-Super Micro, Micron Peak?

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Hey listeners, it's Saturday at March 21st. I'm Hannah Aaron Lang for the Wall Street Journal.

And this is what's news in markets. Our look at the biggest stock moves of the week

and the news that drove them. Let's get to it. The vibes in financial markets did not get much

better this week. There were a lot of big losers including gold and the companies that

mine the precious metal, chip maker, micron technology in spite of its eye popping earnings,

and super micro computer whose co-founder got on the wrong side of US prosecutors this week.

But more on that later. First, let's talk about oil, which is really all that anyone is talking

about since the war in Iran began three weeks ago. At the beginning of the week, US stocks shrugged

off energy concerns, rising with hopes that perhaps a coalition of countries would work together

to open the straight of her moves, the key thoroughfare for a fifth of the world's oil supply.

But the mood shifted on Wednesday when the federal reserve announced its latest move on interest

rates. Policy makers opted to leave rates unchanged, which is pretty much what Wall Street expected.

But then, at a press conference after the decision, Fedger Jerome Powell made remarks that investors

didn't find very comforting. He highlighted the inflation risks posed by the war in Iran,

and said the central bank was in a quote, difficult situation. That really weighed on stocks,

and investors slashed their bets that the central bank would cut interest rates at all in 2026.

Combine that with news of attacks on energy infrastructure in the Middle East,

and it just wasn't a very good week for markets.

Brent Crude Futures, the global benchmark for oil prices, climbed 8.8% this week,

and US stocks ended down for the week. The Dow and the NASDAQ each fell 2.1%,

while the S&P 500 dropped 1.9%.

Gold has literally been a hot commodity recently, but now the precious metal is losing its

luster. Gold logged its worst week since 2011. One reason has to do with interest rates. Gold is

typically a haven that investors flock to during tumultuous periods for the market.

But it also thrives when rates are lower. When interest rates are higher, investors tend to ditch

the metal in favor of other assets, like bonds, that can offer a steady income, and maybe a more

attractive return on investment. US and European Central Banks this week indicated that rate reductions

might not come as quickly as hoped. The energy shock from the war in the Middle East has investors

and central bankers worried that inflation could accelerate and economic growth could slow.

Gold has fallen 7 of the past 8 sessions and ended the week down 9.5%.

Other precious metals also sold off this week, taking with them the stocks of mining companies,

SSR mining, and NUMONT. For the week, SSR mining is down 19%, and NUMONT dropped 13%.

Putting it is one of the worst performers in the S&P 500 for the week.

On the AI front, Blockbuster earnings late Wednesday failed to pump up

Micron technology investors this week. The Memory Chipmaker's second quarter results were

pretty much a blowout. Revenue nearly tripled year over year, while the company's adjusted

operating earnings topped Wall Street's estimates by 33%. Micron forecast stronger revenue growth

for the next quarter and expects to earn 81 cents in gross profits for every dollar of revenue,

a gross margin that is pretty eye-popping for the semiconductor industry.

But that might be the problem. Wall Street is growing more cautious about the AI trade,

and business is so good at Micron that their concerns that profitability is at or near its peak.

As my colleague Dan Gallagher reported, investors are used to seeing big numbers from these

kinds of tech companies. What they're missing is the assurance that it can last.

Shares of Micron, which have surged more than 300% over the past 12 months,

fell almost 4% on Thursday after the company reported results.

For the week, shares are down 4.8%.

And finally, Shares of Super Microcomputer posted one of their biggest daily declines ever

on Friday, after US prosecutors charged three people, including the company's co-founder,

with smuggling machines with high-end Nvidia chips to China.

The stock was down roughly 30% in Friday afternoon trading. Yikes.

The move in Super Microstock erased more than 4 billion from its market value.

For context, at Thursday's close, Super Micro had a market cap of roughly 18.5 billion.

In an unsealed indictment, prosecutors accused the three people of helping smuggle servers into China

through, quote, a tangled web of lies, obfuscation, and concealment, all to drive sales and generate

revenues in violation of the US law, end quote. While Super Micro wasn't named as a defendant,

the company did place its co-founder on leave after learning of his alleged role in the scheme.

The company also said it placed a second employee on leave and fired a contractor.

The debacle left Super Microstock in shambles. The week shares lost 33%, the most of any stock

in the S&P 500. And now you know what's news in markets this week. You can read about more stocks

that moved on the week's news in our live markets coverage on WSJ.com. Today's show was produced

by Alexis Moore, with the supervising producer, Janna Heron. I'm Hannah Erin Lang. Have a great weekend

and see you next Saturday.

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