Wall Street fell on Friday with mega-cap growth and technology stocks led a sell-off in the broader market as concerns over rate hikes dampened risk appetite.
Shares have fluctuated this week minutes after US Federal The Reserve’s July meeting was released on Wednesday, as investors sought to accurately read the tightening trajectory of the central bank’s monetary policy.
The blue-chip Dow was on track to post slim weekly gains, while the Nasdaq and S&P 500 were headed for their first weekly losses after four consecutive weeks of gains.
“There’s not so much good news for a lot of people here today and it’s just manifesting in an overall market sell-off,” said Dennis Dick, retail trader at Triple D Trading, pointing to the weak results at Deere & Co., Germany. Inflation numbers and a sell-off in stocks and cryptocurrencies in the meme.
“You’re getting a little bit of a gain (after) after you’ve had a very good run for the last six weeks.”
Deere fell 2.8% after missing earnings estimates as the world’s largest heavy equipment maker grapples with parts shortages stemming from a supply chain malfunction.
The S&P 500 industry sector fell 1%.
High-growth and technology stocks such as Amazon.com Inc and Alphabet Inc fell nearly 2% as US Treasury bond yields climbed, mimicking European bonds after Germany reported a record-high rise in monthly producer prices.
Banks also fell 1.3% and were on track to end the week low, potentially breaking their six-week winning streak.
Meanwhile, Richmond Federal Reserve Chairman Thomas Barkin said on Friday that the US central bank’s efforts to control inflation could lead to a recession, but it does not need to be “catastrophic”.
St. Louis Fed Chairman James Bullard said Thursday he was leaning toward supporting a third straight 75-basis-point rate hike in September, while San Francisco Fed aide Mary Daly said 50 or 75 basis points next month. The increase would be “reasonable”.
At 09:46 am, the Dow Jones Industrial Average was down 192.74 points, or 0.57%, at 33,806.30, the S&P 500 was down 38.75 points, or 0.90%, at 4,244.99 and the Nasdaq Composite was down 187.97 points, or 1.45. %, at 12,777.37.
The Fed has raised its benchmark overnight interest rate by 225 bps since March to fight four-decade high inflation.
The focus will be on Fed Chair Jerome Powell’s speech on the economic outlook at the annual global central bankers’ conference in Jackson Hole, Wyoming, next week.
Cryptocurrency and blockchain-related stocks fell after a sudden selloff in bitcoin, with crypto exchange Coinbase Global and miner Marathon Digital down 8.5% and 11.5%, respectively.
Bed Bath & Beyond Inc fell 41.1% as billionaire investor Ryan Cohen sold his stake to exit the struggling home goods retailer.
General Motors Co. rose 1.8% after it said it would reinstate quarterly dividend payments.
The number of issues declined to a 7.56-to-1 ratio on the NYSE and 5.16-to-1 on the Nasdaq.
The S&P index recorded a new 52-week high and 29 new lows, while the Nasdaq recorded 10 new highs and 35 new lows.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.