US Stock Market: DJIA, S&P500 and Nasdaq turns red in early trade on Friday

Stocks edged lower on Wall Street Friday as the recent
hike in interest rates continues to pull the market down. The S&P 500 was
0.8% down in early trade and on track to close out a third consecutive week
with losses. The Dow Jones Industrial Average was 389 points or 1.1% down at
34,403 as of 10.15 am Eastern time zone. The Nasdaq composite was 1.08% lower
at 13,033.01.

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On Thursday, Wall Street was looking at the pace of
healthy gains for the week after American Airlines, Tesla and other big
companies reported strong financial results for the first quarter and positive
forecasts for future earnings than market expectations.  The S&P 500 swung between gains and
losses as the Federal Reserve indicated that it may hike short-term interest
rates by double the usual amount at upcoming meetings, starting in two weeks.

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The yield on the 10-year Treasury slipped to 2.89% from
2.91% on Thursday, close to its highest level since 2018. It started the year
at 1.51%.

The two-year yield, which moves on the expectations for
the central bank’s action on short-term rates, has surged to 2.74% from 2.68%
on Thursday. It has jumped over three times from 0.73% at the beginning of the
year.

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Amid the concerns about inflation and interest rates,
most big US companies are posting stronger-than-expected profits and supporting
Wall Street.

Kimberly-Clark, the manufacturer whose brands include
Huggies diapers and Kleenex, surged 8.8% for one of the biggest gains in the
S&P 500 after reporting better-than-expected profit and revenue for the
first quarter.

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SVB Financial rose 13.5% after it reported stronger
earnings per share than market expectations.

Most stocks on Wall Street were trading lower on Friday
and health care stocks were among the biggest laggards.

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HCA Healthcare tumbled 14.8% after reporting weaker
earnings per share than expected.

Retailer Gap slipped 19.2% after it slashed its forecast
for sales and said the CEO of its Old Navy business is departing.