Stocks extended their losses on Wall Street on Friday and major indices ended with another weekly loss. The S&P 500 fell 1.9% and posted its worst weekly result since March 2020. The Industry Average Dow Jones fell 1.3% and the Nasdaq lost 2.7%.
benchmark index S&P 500 registered its third consecutive week of declines, while the losses of the Nasdaq were accentuated, after a correction of the technological index was confirmed at the beginning of the week, a fall of more than 10% from its November peak.
For the week, the S&P 500 lost 5.7%, the Dow Jones dropped 4.6% and the Nasdaq fell 7.6%. Both the Nasdaq and the S&P 500 posted their biggest weekly percentage decline since March 2020, while the Dow Jones since October 2020.
The actions of Netflix fell, dragging down the S&P 500 and the Nasdaq, after the streaming giant anticipated weak subscriber growth. Shares in competitor Walt Disney fell, putting pressure on the Dow Jones.
Fears of inflation and concerns about the impact of rising interest rates have prompted a cautious shift in the broader market after a strong year of earnings in 2021.
“The market is working on digesting how much monetary policy change will occur over the course of 2022″ said Bill Northey, senior chief investment officer at US Bank Wealth Management.
According to preliminary data, the S&P 500 lost 84.51 points, or 1.89%, to 4,398.22 units, while the Nasdaq Composite fell 388.47 points, or 2.74%, to 13,765.55. The Industry Average Dow Jones it fell 439.57 points, or 1.29%, to 34,275.82 units.
Stocks are off to a rocky start in 2022, as the rapid rise in Treasury bond yields, amid concerns that the Federal Reserve will become aggressive in reining in inflation, has hit growth and technology stocks particularly hard.
Investors are closely watching the Fed meeting next week seeking more clarity on the central bank’s plans to tighten monetary policy in coming months, after data last week showed US consumer prices in December rose by the biggest annual gain in nearly four decades.
Apple, Tesla and Microsoft They are some of the big companies that must present their reports in a week that is very full of results.
(With information from Reuters and AP)