Stocks plunged on Friday and hit new lows for 2022, wrapping up a sharp selloff this month as investors continued to dump tech stocks amid continued uncertainty around an economic slowdown caused by the surge. inflation and the prospect of aggressive interest rate hikes.
The Dow Jones Industrial Average fell 2.8%, more than 900 points, while the S&P 500 lost 3.6% and the tech-heavy Nasdaq Composite 4.2%.
The Nasdaq recorded its worst month since October 2008, falling around 15%, with technology stocks among the hardest hit by the sell-off in recent weeks.
The Nasdaq and S&P 500 (down nearly 9% this month) hit new lows for 2022 as investors continue to face myriad uncertainties, from upcoming interest rate hikes of the Federal Reserve and soaring inflation to the Covid-19 cases in China and the continuing war in Ukraine.
Shares of tech giant Amazon became the latest to slump after weaker-than-expected first-quarter results: The stock plunged 14% on Friday after disappointing results.
Shares of other tech stocks also fell, with Intel and Apple dropping 7% and nearly 4% respectively, amid a bleak outlook that spooked investors.
The earnings season so far has been mixed. Big companies that have reported lackluster results in recent days, such as Netflix, Alphabet and Amazon, have all seen strong sales. According to data from Refinitiv, of the 275 S&P 500 companies that have reported first-quarter results so far, about 80% have exceeded analysts’ expectations.
“Disappointing guidance from tech giants Amazon and Apple has heightened fears that a decidedly more hawkish Fed, coupled with still unresolved supply chain issues, and rising energy prices will make more elusive is the hope of a “soft landing” from the Fed, says Quincy Krosby, chief equity strategist for LPL Financial.
Shares of electric vehicle maker Tesla fell 0.8% on Friday after billionaire CEO Elon Musk sold an additional 5.2 million shares this week. It has now sold more than $8 billion worth of Tesla stock in recent days as it seeks to fund its $44 billion acquisition of social media company Twitter.
Amazon shares wipe out $210 billion in a day after inflation triggers surprise loss and ‘ugly’ selloff (Forbes)
Elon Musk sells more Tesla shares, bringing total sales to over $8 billion this week (Forbes)
Is it time to buy Netflix and Alphabet again? Experts say battered tech stocks are value plays (Forbes)
The stock market sell-off continues: the Dow plunges 800 points ahead of big tech earnings (Forbes)