- Dow Jones Industrial Average tumbled more than 720 points on Friday.
- The loss is primarily contributed to Verizon and Caterpillar stocks that saw more than 5% dip on the day.
- Fed’s plan to raise rates weighs on the stocks.
- Technically, the index is bearish, lying below the 20-day SMA.
On Friday, stocks tumbled as investors digested another round of corporate earnings and Fed Chair Jerome Powell’s increasingly hawkish comments on rate hikes. The market is poised for a weekly decline.
During early afternoon trading, the Dow Jones Industrial Average fell over 720 points, or 2.04%, while the S&P 500 lost nearly 2% and the Nasdaq technology index dropped 2.36%.
| Stock | Price | Gain % |
| Procter & Gamble | 161.21 | -1.30% |
| Johnson & Johnson | 181.5 | 11.02% |
| IBM | 137.35 | -1.16% |
| Coca-Cola | 65.6 | 7.14% |
| Travelers | 173.82 | 6.59% |
| 3M | 148.24 | -13.48% |
| Intel | 46.86 | -7.90% |
| Walmart | 157.73 | 11.79% |
| Stock | Price | Gain % |
| Boeing | 176.51 | -13.08% |
| Walgreens Boots Alliance | 45.61 | -14.25% |
| UnitedHealth | 523.64 | 16.19% |
| JPMorgan Chase | 127.36 | -11.16% |
| Home Depot | 302.27 | -11.86% |
| Visa | 210.31 | 0.73% |
| Salesforce | 171.37 | -14.10% |
| Goldman Sachs | 323.77 | -3.47% |
| Nike | 129.84 | -3.90% |
| Verizon | 51.46 | 0.79% |
| Caterpillar | 217.06 | 7.27% |
Powell tempered sentiment after signaling the central bank might raise interest rates in order to bring inflation under control.
He told CNBC on Thursday that it was appropriate to raise interest rates a little faster. It makes sense to bootstrap every game you see fit. “I would say 50 basis points are on the table for the May meeting.”
Stocks of Verizon Communications Inc. and Caterpillar fell on Friday afternoon, dragging down the Dow Jones Industrial Average. Last week, the Dow Jones Industrial Average DJIA, -2.02%, was down 673 points (1.9%), as shares in Verizon Communications Inc. VZ, -5.72%, and Caterpillar CAT, -5.19% contributed to the daily decline in the index.
The Dow declined about 89 points as Verizon Communications Inc. shares fell $3.28, or 6.0%, and Caterpillar shares fell $10.30, or 4.5%. Other major decliners include Nike NKE (-4.02%), Salesforce Inc CRM (-3.14%), and Goldman Sachs GS (-2.92%). Changing just one Dow Jones component by $1 results in a 6.59 point swing.
Losses were also reported on international markets. Dax and Stoxx, the European indices, declined by 2.5% and 1.7% respectively.
Last week, oil prices remained steady, offsetting some of the volatility caused by the Russian invasion of Ukraine. Following most of last week’s teetering around $102 a barrel, West Texas Intermediate, the US benchmark, fell 1.4 percent. Global benchmark Brent crude fell 1.7 percent to $106 a barrel.
Dow Jones price technical analysis: Bears eying 3400 breakout
The Dow Jones index has dropped below the 20-day and 50-day SMAs. The technical outlook is bearish and the index is gearingup for further losses beow 3400. Alternatively, the index may correct higher towards 3450 ahead of 3500. However, the probability of upside correction is quite thin.
The continuation of downtrend primarily depends on the sellers if they sustain below the 20-day SMA. However, the outlook will turn positive if the price manages to move back above the level.
