Stocks fell on Wall Street on Friday, with the major indices ending a solid run of weekly gains. Tech stocks posted some of the biggest losses, with the sector’s decline weighing on the broader market.
benchmark index S&P 500 fell 1.3% on Friday, snapping a four-week winning streak. The index nasdaq, of great technological weight, fell 2 percent. industry index dow jones closed 0.9% lower.
Shares of Bed Bath & Beyond slumped after prominent activist investor Ryan Cohen confirmed he has sold his stake in the struggling retailer. General Motors rose after reinstating its dividend, and Foot Locker soared after replacing its CEO and posting better-than-expected earnings. Treasury yields rose.
The retailersthe banks and the companies of communications they also fell sharply amid the general decline.
Bed Bath & Beyond plunged 40.4% after prominent activist investor Ryan Cohen confirmed he has sold his stake in the company.
The cryptocurrencies fell widely, since the Bitcoin it plunged 8.1% to $21,378, according to CoinDesk.
Among the positive points is General Motors, which rose 2.3% after restoring its dividend. Foot Locker soared 21.1% after replacing its CEO and posting earnings that beat Wall Street estimates.
Bond yields gained ground. The 10-year Treasury yield rose to 2.98% from 2.89% on Thursday.
Trading has been hectic throughout the weekas investors reviewed the latest round of earnings from retailers and updates on spending, home sales and the labor market.
Big retailers like Walmart Y targethave warned investors that the inflation is holding back consumer spending. The department store owner Macy’s It will present its results next week.
A report on the retail sales this week showed that spending remains resilient as gas prices fall and help alleviate some pressure from inflation.
Wall Street is trying to determine the extent to which stubborn inflation is affecting businesses and consumers. and whether the economy can hold on and avoid a recession.
Data from government and corporate reports are also being closely watched as investors try to determine how the Federal Reserve will proceed with its plan to fight inflation by raising interest rates.
The goal is to raise rates and curb economic growth to cool inflation. However, the central bank is in the thin line that separates controlling inflation in an economy that is already slowing down from hitting the brakes too hard and sending the economy into a recession.
Minutes from the Fed’s July meeting, released this week, indicate that inflation is still too high and they make it clear that the central bank will continue to raise interest rates.
The central bank has raised interest rates twice this year by 0.75 percentage point, triple its usual range. Analysts currently expect a rise of half a percentage point at the next board meeting.
(With information from AP)