Stocks sank again on Wall Street on Friday, closing up the S&P 500’s biggest weekly decline since the pandemic began. Investors have grown increasingly worried about rising inflation and how aggressive the Federal Reserve might be in raising interest rates to tamp it down. Historically low rates helped support the broader market as the economy absorbed a sharp hit from the pandemic in 2020 and then recovered over the last two years.
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The S&P 500 fell 84.79 points, or 1.9%, to 4,397.94. The benchmark index has now slipped three straight weeks to start the year. It fell 5.7% this week, its worst weekly decline since March of 2020 when the pandemic sent stocks into a bear market.
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The Dow Jones Industrial Average fell 450.02 points, or 1.3%, to 34,265.37 and also fell for its third straight week. The tech-heavy Nasdaq fell 385.10, or 2.7%, to 13,768.92. It is down 14.3% from the record high set on Nov. 19.
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Technology and communications stocks were among the biggest drags on the market Friday. Streaming video service Netflix plunged 21.8% after it delivered another quarter of disappointing subscriber growth. Disney, which has also been trying to grow its subscriber base for its streaming service, fell 6.9%.
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Treasury yields fell sharply as investors turned toward safer investments. The yield on the 10-year Treasury fell to 1.76% from 1.83% late Thursday. The drop weighed on bank stocks, which rely on higher yields to charge more lucrative interest on loans. Wells Fargo fell 2.4% and Bank of New York Mellon dropped 4.6%.
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Paint and coatings maker PPG Industries fell 3.1% after warning investors that it continues to grapple with high raw materials costs and supply chain problems. Surgical device maker Intuitive Surgical fell 7.9% after warning that the focus on COVID-19 cases is causing delays in performing other procedures.
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Peloton rose 11.7% after the maker of exercise bikes and treadmills said fiscal second-quarter revenue would meet previous estimates.