The stock market took a hit on Friday, with major indexes all closing in the red. The S&P 500 Index, Dow Jones Industrials Index, and Nasdaq 100 Index all ended the day lower, with technology shares leading the decline. Chip maker Broadcom saw a sharp drop of more than 11% after its sales outlook disappointed investors. This, along with other disappointing earnings reports from tech companies like Oracle, caused some investors to shift out of the tech sector and into industrial stocks.
Hawkish comments from Federal Reserve officials also weighed on the market, pushing Treasury yields higher. Concerns about inflation and the economy’s momentum prompted some officials to advocate for keeping policy “modestly restrictive”. On the other hand, some officials expressed concerns about the labor market and remained dovish on inflation.
In terms of earnings, the third-quarter corporate earnings season is wrapping up, with the majority of S&P 500 companies beating expectations. Overseas markets saw mixed results, with European and Chinese stocks closing lower, while Japan’s Nikkei Stock 225 rallied to a four-week high.
Interest rates also saw movement, with T-note yields rising as Fed comments influenced market sentiment. European government bond yields also moved higher on Friday. UK manufacturing production numbers came in weaker than expected, while swaps are not pricing in a rate cut by the ECB at its upcoming policy meeting.
Stock movers on Friday included chip stocks like Broadcom, Micron Technology, and Marvell Technology, all closing lower. AI-linked power stocks also retreated following Broadcom’s sales outlook. Cryptocurrency-exposed stocks were under pressure as Bitcoin fell. On the positive side, Lululemon Athletica, Quanex Building Products, and General Electric all closed higher after positive news.
Looking ahead, upcoming earnings reports include Dakota Gold Corp, Lifezone Metals Ltd, Lionsgate Studios Corp, and Triller Group Inc. It is important to note that all information provided is for informational purposes only and should not be considered as financial advice.
