It’s been another doozy of a week on Wall Street. US stocks fell, capping the worst week since the outbreak of the pandemic roiled markets, with tech shares bearing the brunt of the sell-off amid shaky company earnings and prospects for higher US interest rates.
“This is the longest short week, I think, in history, right?” Jay Pelosky, founder and president of TPW Investment Management, said. “It’s only been a four-day week and it feels like it’s been two weeks rolled into one.”All the U.S. stock indexes closed lower Friday, capping another punishing week for growth and technology stocks as investors await a Federal Reserve update next week on how aggressively interest rates may rise and financial conditions tighten to tame inflation.
The NASDAQ Composite Index led the three stock benchmarks lower Friday, ending down 2.7%, but off 7.6% for the week, which was its worst weekly decline since March 2020, The NASDAQ also entered correction territory mid-week, commonly measured as at least a 10% decline from its recent record close, and recorded its worst start to a year through Friday since the 2008 global financial crisis. It ended at 13,769.
Rising 10-year Treasury yields, have also pressured speculative stocks and total returns of riskier assets. It rose 1.35% to 1.770, while the 2 year was up 2.3% to 1.0158.
The S&P 500 index tumbled 1.89% Friday and 5.7% for the week, and closed below its 200-day moving average, a key technical level, for the first time since 2020. It ended at 4397. The Dow Jones Industrial Average fell 1.3% for the session and 4.6% for the week, pulled lower in part by jitters about pinched margins as major banks kicked off fourth-quarter earnings. It ended at 34,265.
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