The stock market took a downturn on Friday as Big Tech stocks continued to sell off, pushing the S&P 500 back below the 5,000 mark. The S&P 500 fell by about 0.8%, while the Nasdaq Composite slid by 1.8%, indicating a significant decline in the tech sector. However, the Dow Jones Industrial Average managed to rise slightly by about 0.2%, showing some resilience amidst the overall negative trend in the market.
Investors were concerned after Netflix reported disappointing earnings, sending its stock price down by 9% in afternoon trading. This led to a broader sell-off in tech stocks, with market favorites like Nvidia, Amazon, and Apple also experiencing drops in their share prices. The market was already under pressure due to uncertainty surrounding Federal Reserve interest rate cuts, and the negative sentiment was further exacerbated by geopolitical tensions and geopolitical risks in the Middle East.
Despite the overall market weakness, some companies like Procter & Gamble and American Express reported positive earnings results, with the latter seeing a 5% increase in its stock price. The bond market also showed some stability, with government bonds pulling back from their biggest rally of the year. Gold prices cooled slightly after earlier gains, while oil prices remained relatively stable. Overall, the market outlook remained cautious as investors navigated through a combination of earnings reports, geopolitical developments, and macroeconomic factors.
