NEW YORK: Major US stock indexes ended sharply lower on Friday, with technology and financial shares among the biggest drags, as investors worried about more interest rate hikes and the Israel-Hamas conflict spreading.
All of the S&P 500 index’s 11 sectors fell in broad-based selling.
The KBW regional banking index was down sharply, while shares of Regions Financial slid to their lowest since March 2020.
“That whole sector is under a cloud, with higher rates. We might not have that soft landing and that’s going to hurt,” said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm in Toledo, Ohio.
The benchmark 10-year Treasury yield fell on Friday, a day after crossing 5% for the first time since July 2007 in the wake of comments by Federal Reserve Chair Jerome Powell. He said the US economy’s strength and tight labor markets could require tougher borrowing conditions to control inflation.
Investors will also likely keep a close eye on Middle East events over the weekend, Lancz said. “Investors are going to be cautious” going into the weekend, he said.
According to preliminary data, the S&P 500 lost 54.48 points, or 1.27%, to end at 4,223.52 points, while the Nasdaq Composite lost 202.46 points, or 1.54%, to 12,983.81. The Dow Jones Industrial Average fell 291.83 points, or 0.87%, to 33,122.34.
Israel leveled a northern Gaza district on Friday.
SolarEdge shares slumped after it warned of significantly lower revenue in the fourth quarter.
The third-quarter US earnings season is well under way, with 86 companies in the S&P 500 having reported.
Comments
Comments are closed.