Netflix Stock Crashes As Nasdaq Has Worst Week Since October 2020

The stock market fell on Friday as the sell-off in tech stocks intensified, with the Nasdaq falling deeper into correction territory and posting its worst week since 2020.

The tech-laden index is down from its record highs.

Richard Drew/ASSOCIATED PRESS

The S&P 500 lost 1.9% and the tech-laden Nasdaq lost 2.5%.

This week alone, the index plunged over 7%, its worst week since October 2020.

The company's fourth-quarter earnings report showed a slowdown in subscriber growth.

Disney fell nearly 7%, while other big tech names likeTesla and Amazon lost more than 5%.

Tech stocks have been getting hammered recently, largely due to a surge in government bond yields this week.
The Federal Reserve and how it will deal with surging inflation have been the focus of investors, with the central bank preparing to raise interest rates as soon as March.

On Thursday, the stock plunged after reports that the company would temporarily halt production of its at- home fitness products due to waning demand.

Edward Moya, senior market analyst for Oanda, says that Wall Street has gone from debating how aggressive one should be to selling it all. The U.S. stocks have been on a roller coaster. He warns that the Fed could become overly aggressive in tightening monetary policy because of inflationary pressures.
The key background is.

The stock market is off to a bad start. The S&P 500 has dropped more than 8% in January, while the tech-laden Nasdaq is up more than 12%. Concerns about high inflation and tighter monetary policy from the Federal Reserve have caused markets to struggle.

Contra:

Brad McMillan, chief investment officer for Commonwealth Financial Network, says that stock prices are likely to have a solid foundation over time if earnings stay solid and interest rates stay in the range they've been in for the past five years. After the financial crisis, valuations and stock prices can bounce back quickly, as we saw in 2020 and 2018, thanks to that solid foundation.

Next week will see tech earnings from companies like Apple and Microsoft.