U.S. stocks on Friday ended a chaotic week for markets on a mixed note. The benchmark S&P 500 index (SP500) closed below the key 5,000-point level for the first time since early February, at the height of an ongoing April crisis. retreat.
Today’s session was dominated by Netflix’s (NFLX) post-earnings decline, which dragged down the tech sector, and geopolitical tensions between Iran and Israel that kept investors on the edge of their seats.
The tech-heavy NASDAQ composite index (COMP:IND) warehouse 2.05% to close at 15,282.01 points, dragged down by a ~9% collapse in Netflix (NFLX). Wall Street reacted negatively to the streaming giant’s decision to completely eliminate reporting of subscriber numbers. Super Micro Computer (SMCI) was another major tech name that took a nosedive. The AI server maker did not provide preliminary data along with the earnings announcement as it usually does.
The S&P 500 Index (SP500) dropped by 0.88% to close at 4,967.23 points, finishing below the 5,000 threshold for the first time since February 21st. The benchmark index has retreated more than 5% from its record close on March 28, mainly due to stronger-than-expected economic data, hawkish Fed speech and a recalibration of interest rate cut expectations.
The Dow (DJI) bucking, up 0.56% settle at 37,986.40 points. The blue chip indicator was helped by the rise in American Express (AXP). The credit card issuer reported weak quarterly payment volume across its network but beat profit estimates.
Of the 11 S&P sectors, six closed in the green.
For the week, the NASDAQ Composite Index (COMP:IND) slipped 5.52%the S&P index (SP500) slipped 3.05%while the Dow (DJI) gained a whisker of 0.01%.
“This week marked the end of the AI dream. TSMC (TSM) has dumped earnings, SMCI is now no longer everyone’s favorite free money ticket, and all in all, it appears to be All Over For Tech. Still! So soon! Alternatively we could just see a small technical rotation,” Alex King, investment group leader at Cestrian Capital Research, told Seeking Alpha.
“The Dow (DJI) hit a major technical low, held it there for four days, and made a nice move higher today; the Russell 2000 (RTY) is also considering closing flat at the time of writing. These periods of rotation may alarm nervous investors, but they are a gift to the patient. We continue to look upwards towards the end of the year for NVDA too!”.
Other major names set to release quarterly numbers on Friday include Procter & Gamble (PG) – owner of popular consumer brands such as Gillette, Pampers, Tide and Ariel – and the world’s largest oilfield services and equipment provider SLB (SLB), formerly known as Schlumberger.
US Treasury yields tracked lower those of their global counterparts as traders across markets bought bonds following new developments between Israel and Iran. According to media reports, Israel fired missiles on Friday in a retaliatory strike against Iran, which hit Israel in an air operation last weekend. According to the latest reports, Tehran has indicated that it has no intention of responding.
The long-term 30-year yield (US30Y) fell 2 basis points to 4.72%, while the 10-year yield (US10Y) fell 1 basis point to 4.62%. The short-term, more rate-sensitive 2-year yield (US2Y) was slightly lower at 4.99%.
See how Treasury yields have fared along the curve on the Seeking Alpha bonds page.
Among other players active Friday, Paramount Global (PARA) (PARAA) closed as the top S&P percentage gainer, following a report that Sony Picture Entertainment (SONY) had joined the fray to acquire the iconic studio cinematic.