Reuters.- Wall Street’s main indices closed sharply lower this afternoon as shares of Netflix tumbled following a weak earnings report that also weighed on rivals, ending a gloomy week on a sour note.
One of the main Wall Street indices, The S&P 500 posted its third straight week of declines. while the losses of the Nasdaq were accentuated, after a correction of the technological index was confirmed earlier in the week, a drop of more than 10% from its November maximum.
For the week, the S&P 500 lost 5.7%, the Dow Jones dropped 4.6% and the Nasdaq fell 7.6%. Both the Nasdaq and the S&P 500 posted their biggest weekly percentage decline since March 2020, while the Dow Jones since October 2020.
Wall Street saw Netflix shares fall, dragging down the S&P 500 and the Nasdaq, after the streaming giant anticipated weak subscriber growth. Shares in competitor Walt Disney fell, putting pressure on the Dow Jones.
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“It’s really been a continuation of the technology grind,” said Paul Nolte, portfolio manager at Kingsview Investment Management, which trades on Wall Street. “It’s really a combination of a rotation away from technology, as well as very poor numbers from Netflix, which I think is the catalyst for today.”
According to preliminary data, the S&P 500 lost 84.51 points, or 1.89%, to 4,398.22 points, while the Nasdaq Composite dropped 388.47 points, or 2.74%, to 13,765.55. The Dow Jones Industrial Average fell 439.57 points, or 1.29%, to 34,275.82.
Stocks are off to a rocky start in 2022, as the rapid rise in Treasury bond yields, amid concerns that the Federal Reserve will become aggressive in reining in inflation, has hit growth and technology stocks particularly hard.
Investors are closely watching next week’s Fed meeting for more clarity. on the central bank’s plans to tighten monetary policy in coming months, after data last week showed that US consumer prices in December had the biggest annual rise in nearly four decades.
Apple, Tesla and Microsoft are some of the big companies that must present their reports in a week that is very full of results.
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