US stocks fell on Friday as investors continued to worry about the Federal Reserve, rising inflation, and disappointing earnings from technology firms.
The tech-laden index fell further, dragged by the streaming giant. The index fell more than 300, breaking below its moving average. The S&P 500 had its worst week since October 2020.
The US indexes stood after 4:00 pm. The close is on Friday.
After disappointing subscriber outlook, the company plunged more than 20%. A low-interest-rate environment has largely benefited from a selloff in tech stocks, which have lost nearly 16% so far this year. Three Wall Street analysts explained why they don't like the stock.
The previous session had seen a 24% slump in Peloton. The maker of high-end exercise equipment acknowledged plans to adjust production.
Expectations that the Fed will start to reduce its balance sheet and hike rates in early 2022, which will end the central bank's massive support of the US economy through the pandemic, has roiled US equities as a whole.
Edward Moya, senior equity analyst at Oanda, said in a Friday note that "Wall Street has gone from debating how aggressive one should be in tech into a debate about how to make money in the future."
There are two main concerns for investors, one of which is inflationary pressures that could prompt the Fed into becoming overly aggressive in tightening monetary policy, and the other is profit growth expectations that may have been too optimistic.
Tech earnings coming up include Apple, Microsoft, andTesla.
The president and CEO of Thornburg Investment Management said in a note that he was focused on earnings. I think we'll have a different market than one that is correlated with rates at the end of the year.
The yield on the 10-year Treasury was 1.749%. Bond yields move with prices.
The prices of cryptocurrencies have fallen sharply.
As a broad sell-off intensified Friday, the price of ether dropped to under $3,000, a six-month low.
"The decline is not a breakdown, but it brings the chart out of the consolidation phase that has characterized the chart for about three weeks in a bearish shift in short-term momentum," according to a note Friday from the founder of Fairlead Strategies.
Prices are still near their highest levels since late 2014, but oil is slightly lower.
The price of West Texas Intermediate crude oil fell. As demand for the commodity outstrips supply, the international benchmark dropped as much as 0.81% to $87.61 per barrel.
If the conflict between Russia and Ukraine leads to a supply shock, the price of oil could go to $150 a barrel in the first quarter of 2022.
The price of gold was $1,830.26 per ounce.
All Rights Reserved © 2024
