February 2, 2023

DS Duke

Global Business In World

The NASDAQ Composite dropped on Friday, notching its worst week since 2020, as sharp losses in streaming giant Netflix dragged the technology-focused index deeper into correction territory.

The Dow Jones Industrials swooned 450.02 points, or 1.3%, to 34,245.37, a loss on a holiday-shortened week of 1,646 points, or 4.86%. Markets were closed Monday for Martin Luther King Day.

The S&P 500 sank 84.79 points, or 1.9%, to 4,397.94, for a weekly loss of 265 points, or 5.68%. Both the Dow and S&P 500 are on track for a third straight week of losses, their worst weeks since 2020.

The NASDAQ crumpled 389.10 points, or 2.7% Friday to 14,039.86, for a weekly loss of 1,125 points, or 7.55%.

The NASDAQ is off to its worst start to the year, through the first 14 trading days, since 2008.

Both the Dow and S&P 500 are on track for a third straight week of losses.

Netflix’s disappointing quarterly report is the latest setback for technology investors. Shares of the streaming giant tumbled 21.8% on Friday after the company’s fourth-quarter earnings report showed a slowdown in subscriber growth. Its competitors’ shares also declined, with Dow component Disney, which operates the Disney+ streaming service, off 6.9%.

Netflix is the first major tech stock to report earnings this season, with Apple and Tesla slated to post earnings next week. Tesla lost 5.3% on Friday. Other tech names like Amazon dropped 6%, and Meta Platforms fell 4.2%.

Meanwhile, Peloton shares rebounded 11.7% on Friday. The maker of interactive fitness bicycles and treadmills plunged 23.9% during regular trading on Thursday after reports that the company is temporarily halting production of its fitness products.

Prices for 10-year Treasurys leaped, lowering yields to 1.76% from Thursday’s 1.82%. Treasury prices and yields move in opposite directions.

Oil prices ditched 67 cents to $84.88 U.S. a barrel.

Gold prices retreated $9.20 to $1,833.40 U.S. an ounce.

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