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Wednesday, May 25, 2022

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    Wall Street ends week with losses magnified by Netflix disappointment

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    The benchmark S&P 500 index recorded its third straight week of declines (Image: REUTERS/Carlo Allegri)

    The main indices of Wall Street closed down sharply this Friday after the shares of Netflix (NFLX) plummeted on the back of a weak balance sheet that also weighed on rivals, and stocks ended a bad week on a negative note, after a brutal week for equities in which the S&P 500 and Nasdaq posted their biggest weekly percentage drops since the beginning of the pandemic in March 2020.

    The S&P 500, considered the benchmark for the US stock market U.S, recorded its third consecutive week of lows and is 8.3% below the record reached in early January.

    Losses also deepened for the Nasdaq after the stock-heavy index of technology this week plunged into correction territory, down more than 10% from its November peak.

    The Nasdaq is now down 14.3% from its record and this Friday closed at its lowest level since June.

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    Netflix shares tumbled 21.8%, weighing on the S&P 500 and Nasdaq, after the streaming giant predicted weak subscriber growth.

    Shares in competitor Walt Disney fell 6.9%, pulling the Dow, while Roku lost 9.1%.

    “It was really a continuation of a turmoil in the technology sector,” said Paul Nolte, portfolio manager at Kingsview Investment Management.

    The S&P 500 index closed down 1.89% at 4,397.94 points. The S&P dipped below its 200-day moving average, a key technical level, for the first time since June 2020.

    The Dow Jones Industrial Average fell 1.30% to 34,265.37 points, down for the sixth straight session, the longest negative streak since February 2020.

    The Nasdaq Composite technology index fell 2.72% to 13,768.92 points.

    in the week, the S&P 500 (SPX) fell by 5.7%, the Dow Jones (DJI) dropped 4.6%, and the Nasdaq (US100) lost 7.6%.

    Equities are off to a rocky start in 2022 as a rapid rise in Treasury yields amid concerns that the US central bank will become aggressive in controlling inflation has hit tech and growth stocks particularly hard.

    And investors are keeping a close eye on next week’s Fed meeting, seeking more clarity on the central bank’s plans to tighten monetary policy in the coming months, after data last week showed that US consumer prices in December had the biggest annual increase in nearly four decades.

    Source From: Moneytimes

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