Stock Market News – Dow Falls 200 Points to End Choppy Week
Stocks ended mixed on Friday after a choppy week dominated by concerns about rising bond yields.
While technology shares staged a partial rebound from a steep Thursday selloff, all three major benchmarks closed in the red for the week.
DOW JONES GLO(BA)L/DJIA”>
Dow Jones Industrial Average
fell 234.33 points, or 0.7%, to 32,627.97. The
declined 2.36 points, or 0.1%, to 3,913.10, while the
climbed 99.07 points, or 0.8%, to 13,215.24. For the week, the Dow industrials lost 0.5%, while the S&P 500 and Nasdaq each fell 0.8%.
The 10-year Treasury yield held near 1.73% Friday, nearly flat for the day. But the benchmark yield climbed nearly 10 basis points for the week, according to Tradeweb, and during Thursday’s session a steep rise in yields helped send stocks solidly lower. Growth stocks, many of which are in the technology sector, are especially sensitive to changes in interest rates.
Bank stocks declined, with the
KBW Bank Index
(BKX) down 1.6% for the day, as the Federal Reserve declined to extend pandemic regulatory relief past its original expiration date of March 31. The central bank plans to take public comment on ways to adjust the capital rule, however, and some strategists have raised questions about the severity of constraints imposed by the rule as it stands.
In Asia, both Tokyo’s
and Hong Kong’s
slid 1.4%, while the
Shanghai Composite Index
dipped 1.7%. The
in London fell 1%, while the
in Paris declined 1.1% and Frankfurt’s
Concerns around inflation remain the most dominant force behind market sentiment, according to
an analyst at FXTM, as bond yields remain in the spotlight.
Tan also noted that Friday’s “quadruple witching”—a date on which options and futures for individual stocks and stock market indexes expire simultaneously—would likely give rise to heightened volatility, “but unruly bond yields are still likely to be the main culprit going forward.”
In more macro news, the first face-to-face meetings between senior U.S. and Chinese officials since President
election have kicked off in Alaska.
Deutsche Bank analyst Henry Allen noted that “the tone from both sides was a harsh one, with U.S. Secretary of State Blinken’s opening statement criticizing China’s actions, saying that they ‘threaten the rules-based order that maintains global stability.’”
“The tone will raise investor fears that U.S.-China relations are likely to remain tense over the coming years, in spite of the change in administration in the U.S.,” Allen said.
All of the major equity indexes in Asia ended the trading day down, as the Bank of Japan decided to keep interest rates on hold but widened the band around the yield target on its 10-year bond to 25 basis points either side.
(ticker: FDX) shares rose 6.1% after the company beat earnings estimates Thursday evening. The company reported earnings per share of $3.47, beating estimates of $3.20, while revenue was $21.5 billion, better than the expected $20 billion.
(NKE) shares fell 4% after the company posted a mixed quarter on Thursday. Nike earned 90 cents per share on revenue of $10.4 billion, while analysts were looking for EPS of 76 cents on revenue of $11 billion.
Keurig Dr Pepper
(KDP) shares rose 0.7% after J.P. Morgan upgraded the stock to Overweight from Neutral.
stock (F) rose 2.7% after Barclays upgraded the shares to Overweight from Equalweight.
stock (SRPT) slipped 0.4% even after the company released positive long-term data for one of its experimental gene therapies.
Write to Alexandra Scaggs at [email protected]