DJIA: 34,265.37, down 450.02
S&P 500: 4,397.94, down 84.79
Nasdaq: 13,768.92, down 385.10
S&P 500 sees worst week since March 2020
A rout in U.S. equities deepened on Friday as investors weighed corporate earnings results and remained jittery about valuations and the prospect of tighter monetary policy. The S&P 500 fell 1.9%, dipping below its 200-day moving average, a closely watched technical level to a three-month low. The broad benchmark logged its worst weekly drawdown since March 2020 (-5.7%), as did the Nasdaq Composite, which shed 2.7% to a seven-month trough, ending a 7.6% weekly drop. The tech-heavy benchmark settled 14.2% below its most recent November 19 record and is positioned for its worst month since October 2008 (-12% month-to-date). The Dow lost 450 points, sliding 4.6% for the week–its worst showing since October 2020.
Nine of 11 S&P 500 sectors closed in negative territory, with the more traditionally defensive Consumer Staples and Real Estate groups bucking the downtrend. Communication Services led the decline, with Netflix tumbling 21.8% after its current-quarter subscriber growth forecast fell well below analyst estimates. .
Treasuries caught a bid amid the perceived risk off tone, with the yield on the 10-year note down six basis points (0.06%) to 1.76%, declining modestly for the week. Still, the benchmark yield has jumped 25 basis points (0.25%) year-to-date as market participants have repositioned for a faster pace of monetary policy tightening as the Federal Reserve (Fed) has made it clear that combating elevated inflation is a top priority. Next week, the central bank’s two-day policy meeting will headline the proceedings. In commodities, West Texas Intermediate crude settled 1% lower at $84.68/barrel, still capping a fifth consecutive weekly advance, its longest winning streak since October.
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