Nasdaq, S&P 500 Extend Losing Streaks On Tech Weakness But Dow Advances
19 Abril 2024 - 5:32PM
IH Market News
With technology stocks under pressure, the Nasdaq showed a
substantial move to the downside during trading on Friday,
extending its recent losing streak. The S&P 500 also saw
further downside, while the narrower Dow bucked the downtrend.
The Nasdaq plunged 319.49 points or 2.1 percent to 15,282.01,
closing lower for the sixth straight session and tumbling to its
lowest closing level in well over two months.
The S&P 500 also closed lower for the sixth straight day,
slumping 43.89 points or 0.9 percent to a two-month closing low of
4,967.23.
Meanwhile, the Dow added to the slim gain posted in the previous
session, climbing 211.02 points or 0.6 percent to 37,986.40.
For the week, the tech-heavy Nasdaq cratered by 5.5 percent and
the S&P 500 dove by 3.1 percent, while the Dow crept slightly
higher.
The steep drop by the Nasdaq partly reflected a nosedive by
shares of Netflix (NASDAQ:NFLX), with the streaming giant plunging
by 9.1 percent.
Netflix came under pressure after reporting better than expected
first quarter results but providing disappointing revenue
guidance.
AI darling Nvidia (NASDAQ:NVDA) also plummeted by 10.0 percent
on the day, contributing to significant weakness in the
semiconductor sector.
Reflecting the weakness in the sector, the Philadelphia
Semiconductor Index dove by 4.1 percent to its lowest closing level
since early February.
Considerable weakness among computer hardware stocks also
weighed on the Nasdaq, with the NYSE Arca Computer Hardware Index
tumbling by 3.7 percent to its lowest closing level in well over a
month.
Outside of the tech sector, retail stocks also came under
pressure on the day, dragging the Dow Jones U.S. Retail Index down
by 1.5 percent.
Meanwhile, the Dow benefitted from a notable advance by shares
of American Express, with the financial services giant surging by
6.2 percent.
The jump by American Express came after the company reported
first quarter results that exceeded expectations on both the top
and bottom lines.
Banking stocks also turned in a strong performance on the day,
driving the KBW Bank Index up by 2.9 percent.
Interest rate-sensitive utilities stocks also moved notably
higher amid a pullback by treasury yields, resulting in a 1.8
percent jump by the Dow Jones Utility Average.
An increase by the price of crude oil also contributed to
strength among energy stocks after Israel launched retaliatory
strikes against Iran.
Crude oil soared overnight but gave back ground after Iranian
state media downplayed the attacks, saying explosions heard in
Isfahan were a result of the activation of Iran’s air defense
systems.
Other Markets
In overseas trading, stock markets across the Asia-Pacific
region moved sharply lower during trading on Friday. Japan’s Nikkei
225 Index plunged by 2.7 percent, while Hong Kong’s Hang Seng Index
slumped by 1.0 percent.
Meanwhile, the major European markets finished the day mixed.
While the U.K.’s FTSE 100 Index crept up by 0.2 percent, the French
CAC 40 Index closed just below the unchanged and the German DAX
Index fell by 0.6 percent.
In the bond market, treasuries pulled back off their highs after
an early advance but remained positive. As a result, the yield on
the benchmark ten-year note, which moves opposite of its price,
fell by 3.2 basis points to 4.615 percent after hitting a low of
4.582 percent.
Looking Ahead
Next week’s trading may be impacted by reaction to the latest
U.S. economic data, including reports on new home sales, durable
goods orders and personal income and spending.
The Commerce Department’s personal income and spending report
includes readings on inflation said to be preferred by the Federal
Reserve.
Earnings season also starts to pick up steam next week, with
Tesla (NASDAQ:TSLA), Boeing (NYSE:BA), IBM (NYSE:IBM), Caterpillar
(NYSE:CAT), Honeywell (NYSE:HON), Alphabet (NASDAQ:GOOGL), Intel
(NASDAQ:INTC), Microsoft (NASDAQ:MSFT), Chevron (NYSE:CVX) and
Exxon Mobil (NYSE:XOM) among the companies due to report their
quarterly results.
SOURCE: RTTNEWS
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