Dow Plunges More Than 900 Points for Its Worst Day since 2020, Falls for a Fourth Straight Week
The comments below are an edited and abridged synopsis of an article by Tanaya Macheel
Stocks plunged last week, with the Dow suffering its worst one-day loss since the throes of the pandemic, as corporate earnings and the prospect of rising rates spurred a wave of selling.
The Dow fell 2.8%, to 33,811.40. The S&P 500 was 2.8% lower at 4,271.78, for its worst day since March. The Nasdaq fell by 2.6% to 12,839.29. The loss was the biggest for the Dow since October 28, 2020.
United Health, Caterpillar, Goldman Sachs, Home Depot and Visa were big downside contributors.
Those losses put the Dow down 1.9% for the week, its fourth straight weekly decline and its ninth losing week of the last 11. The S&P 500 posted a 2.8% weekly loss, marking its third straight one-week decline. The Nasdaq lost 3.8%.
Companies reporting disappointing quarterly results led the market decline. HCA Healthcare dropped 21.8% and was the worst-performing stock in the S&P 500. The decline came as the company posted weak full-year earnings and revenue guidance.
Friday’s action followed a dramatic reversal Thursday after a speech by Fed Chair Jay Powell dented market sentiment. Powell said that taming inflation is absolutely essential, and a 50-basis point hike is on the table for May.
Rates jumped on Powell’s remarks. On Friday, the benchmark 10-year Treasury yield dipped slightly to around 2.9%.
When asked about the potential of a 75-basis point hike, Loretta Mester, president of the Federal Reserve Bank of Cleveland, said “we don’t need to go there,” and said she would support a 50-basis point hike in May.