The US stock market fell on Friday as the sell-off in tech stocks intensified after Netflix posted lacklustre earnings — with the Nasdaq Composite falling deeper into correction territory and posting its worst week since 2020, Forbes reported.
The Dow Jones Industrial Average fell 1.3 per cent, around 450 points, while the S&P 500 lost 1.9 per cent, and the tech-heavy Nasdaq Composite fell 2.7 per cent.
The Nasdaq fell further into correction territory — over 10 per cent from its record highs last November — and has plunged over 7 per cent this week alone, its worst since October 2020, the report said.
Shares of streaming giant Netflix dragged down the index, plunging 22 per cent on Friday after the company’s fourth-quarter earnings report showed a slowdown in subscriber growth.
Streaming rival Disney fell nearly 7 per cent, while other big tech names like Tesla and Amazon lost over 5 per cent and 6 per cent, respectively, Forbes reported.
Tech stocks have been getting hammered recently, largely thanks to a continuing surge in government bond yields this week, with the US 10-year Treasury hitting a high of 1.9 per cent on Wednesday.
Investors have remained focused on the Federal Reserve and how it will deal with surging inflation, with the central bank tightening its monetary policy and preparing to raise interest rates as soon as March.
Stocks are off to a dismal start in 2022 so far. The Dow is down over 6 per cent in January, the S&P 500 has dropped over 8 per cent and the tech-heavy Nasdaq more than 12 per cent.
Markets have struggled to gain footing amid rising investor concerns around high inflation and tighter monetary policy from the Federal Reserve, the report said.