DJIA: 34,451.23, down 113.36
S&P 500: 4,392.59, down 54.00
Nasdaq: 13,351.08, down 292.51
Stocks slide, yields climb higher
U.S. stocks finished lower on Thursday as investors digested a slew of earnings reports and economic data ahead of the long holiday weekend. Additionally, a monthly options expiration estimated to eclipse $2 trillion was cited as a factor increasing volatility. The S&P 500 fell 1.2% to end 2.1% lower for the week, while the tech-heavy Nasdaq Composite dropped 2.1%, bringing its four-session slide to 2.6%. Both benchmarks weathered their second straight weekly drawdown. The Dow lost 113 points for its third consecutive weekly decline (-0.8%).
In earnings, shares of Morgan Stanley and Citigroup Inc. each advanced on strength in their trading operations. In other corporate news, Tesla Inc. CEO Elon Musk offered to take Twitter Inc. private.
Meanwhile, a reprieve in the back-up in Treasury yields proved to be short-lived as remarks from a key Federal Reserve (Fed) leader reignited focus on the central bank’s plans for aggressive monetary policy tightening. New York Fed President John Williams stated that raising interest rates in 0.50% intervals was a “reasonable option.” The yield on the 10-year note spiked 14 basis points (0.14%) to 2.83%, the highest level since December 2018. Elsewhere, 30-year fixed mortgage rates surged to 5% for the first time since early 2011, according to Freddie Mac.
On the data front, retail sales rose a smaller-than-anticipated 0.5% in March, though February’s reading was upwardly revised. Separately, weekly initial jobless claims came in at 185,000, still low by historical standards and underscoring a tight labor market. Additionally, a preliminary reading of consumer sentiment from the University of Michigan unexpectedly rebounded in April from the lowest point since August 2011.
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