U.S. stocks on Friday closed out a chaotic week for markets on a mixed note. The benchmark S&P 500 (SP500) closed below the key 5,000 points level for the first time since early February, a culmination of an ongoing April pullback.
Today’s session was dominated by a post-earnings slide in Netflix (NFLX) which pulled down the technology sector, and geopolitical tensions between Iran and Israel which kept investors on edge.
The tech-heavy NASDAQ Composite Index (COMP:IND) shed 2.05% to close at 15,282.01 points, dragged down by a ~9% slump in Netflix (NFLX). Wall Street reacted negatively to the streaming giant’s decision to phase out its reporting of subscriber numbers entirely. Super Micro Computer (SMCI) was another major tech name that slumped. The maker of artificial intelligence servers did not provide any preliminary figures along with its earnings announcement like it usually does.
The S&P 500 (SP500) dipped 0.88% to close at 4,967.23 points, finishing below the 5,000 mark for the first time since February 21. The benchmark index has retreated more than 5% from its record closing high notched on March 28, primarily due to stronger-than-expected economic data, hawkish Fedspeak and a recalibration of interest rate cut expectations.
The Dow (DJI) bucked the trend, climbing 0.56% to settle at 37,986.40 points. The blue-chip gauge was helped by a rise in American Express (AXP). The credit card issuer reported soft quarterly payments volume across its network, but beat profit estimates.
Of the 11 S&P sectors, six ended in the green.
For the week, the NASDAQ Composite Index (COMP:IND) slipped 5.52%, the S&P (SP500) slid 3.05%, while the Dow (DJI) gained a whisker by 0.01%.
“This week marked the end of the AI dream. TSMC (TSM) dumped on earnings, SMCI is now no longer everyone’s favorite free-money ticket, and all in all it appears to be All Over For Tech. Again! So soon! In the alternative we may just be seeing a little technical rotation,” Alex King, investing group leader of Cestrian Capital Research, told Seeking Alpha.
“The Dow (DJI) put in an important technical low, held it fast for four days and put in a nice move up today; even the Russell 2000 (RTY) is thinking about closing flat at the time of writing. These periods of rotation can alarm jittery investors but are a gift to the patient. We continue to look upwards toward year end. Even for NVDA!” King added.
Other major names to report quarterly numbers on Friday included Procter & Gamble (PG) – the owner of popular consumer brands such as Gillette, Pampers, Tide, and Ariel – and the world’s biggest oilfield services and equipment provider SLB (SLB), formerly known as Schlumberger.
U.S. Treasury yields followed global peers lower, as traders across markets snapped up bonds following fresh developments between Israel and Iran. According to media reports, Israel launched missiles on Friday in a retaliatory strike against Iran, which hit Israel with an airborne operation last weekend. As per the latest reports, Tehran indicated that it had no plans to respond.
The longer-end 30-year yield (US30Y) was down 2 basis points to 4.72%, while the 10-year yield (US10Y) was down 1 basis point to 4.62%. The shorter-end more rate-sensitive 2-year yield (US2Y) was slightly lower to 4.99%.
See how Treasury yields have done across the curve at the Seeking Alpha bond page.
Among other active movers on Friday, Paramount Global (PARA) (PARAA) ended as the top S&P percentage gainer, following a report that Sony Picture Entertainment (SONY) had joined the fray over acquiring the iconic film studio.
Read More: Stock Market News Today: Markets end chaotic week largely in the red (SP500)