NASDAQ Falls for 6th Straight Day
April 19,2024 04:29 pm EST
The NASDAQ Composite fell for a sixth straight session on Friday, on track for its longest losing streak in more than a year. The downtrend comes as Nvidia dived, adding to recent market woes tied to geopolitical conflicts and sticky inflation.
The Dow Jones Industrials rocketed 211.02 points to close the day and the week at 37,986.40, lifted by a rally of more than 5% in American Express following earnings.
With Friday's advance, the Dow is now trading around its flatline for the week. The blue-chip average has finished the last two weeks in the red.
The much-broader index dropped 43.89 points to 4,967.23.
The tech-heavy index sank 319.49 points, or 2.1%, to 15,282.01. Both the NASDAQ and S&P were poised for their sixth straight negative days, streaks not seen for either since October 2022.
Netflix retreated more than 9% even after quarterly earnings beat on the top and bottom lines. The streamer's subscribers jumped 16% from the previous year, but it said it would no longer report paid memberships starting in 2025.
Chip stocks Nvidia and Super Micro Computer were also under increasing pressure in afternoon trading, a sign that investors were rotating heavily out of the sector that led the bull market. The Nvidia dropped more than 10%, tracking for its worst day since March 2020. Super Micro was off 20%.
Those moves come as the S&P 500 is heading for its worst weekly performance since March 2023 amid growing fears around the path of inflation and monetary policy.
With a loss of more than 3%, it would also be the large-cap benchmark's third straight negative week. A chunk of that downward pressure came from tech stocks, as the sector was the worst performing in the S&P 500 in both the day and week.
The S&P 500 is now more than 5% off its 52-week high, part of a market pullback that has been largely driven by tempered expectations for rate cuts amid sticky prices. Economists and strategists now see the Federal Reserve waiting until at least September to lower the cost of borrowing money.
Concerns over escalation in the Middle East conflict following Israel's retaliatory strike on Iran appeared largely shaken off by Friday's open.
Those moves come as the S&P 500 is heading for its worst week in almost six months amid growing fears around the path of inflation and monetary policy.
The NASDAQ Composite has fallen 4.9% so far this week after sliding over the last five days. The tech-heavy index is on pace for its fourth straight down week, its longest negative streak since December 2022. It would also mark the NASDAQ's worst weekly performance since March 2023.
Media reports are circulating Israel conducted a limited strike against Iran. Earlier, Iran's Fars news agency reported explosions were heard near the airport at the country's central Isfahan city, but the reason was unknown.
Prices for the 10-year Treasury inched higher, lowering yields to 4.62% from Thursday's 4.63%. Treasury prices and yields move in opposite directions.
Oil prices gained 47 cents to $83.20 U.S. a barrel.
Gold prices recovered $4.50 to $2,402.50 U.S. an ounce.
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