U.S. stocks posted the worst weekly performance in years in the past week as investors grew more concerned about rising interest rates while digesting mixed quarterly corporate earnings reports.
For the week, the blue-chip Dow declined 4.1 percent, and the broader S&P 500 lost 3.9 percent, while the tech heavy Nasdaq decreased 3.5 percent.
The Dow Jones industrial average plunged 665.75 points, or 2.54 percent to close at 25,520.96, the worst day since June 2016. The S&P 500 fell 2.12 percent to finish at 2,762.13, the biggest one-day fall since September 2016. The Nasdaq Composite dropped 1.96 percent to close at 7,240.95, the worst single-day performance since August 2017.
Analysts said interest rates were the top story throughout the week. On Friday, the 10-year Treasury yield jumped to as high as 2.85 percent, a four-year high, putting pressure on the stocks. The 30-year yield rose to its highest level since March.
Rising bond yields are traditionally seen as bad for stocks as it means large companies will have to spend more to finance their debts as interest rates increase.
On the economic front, total nonfarm payroll employment increased by 200,000 in January, and the unemployment rate stayed unchanged at 4.1 percent, stronger than market expectations, the U.S. Bureau of Labor Statistics said Friday.
Average hourly earnings posted a 0.3 percent gain for the month and an annualized gain of 2.9 percent, said the bureau.
rk interest rate unchanged at 1.25 to 1.5 percent after its two-day meeting, while giving an upbeat assessment of recent U.S. economic growth.
"Gains in employment, household spending, and business fixed investment have been solid, and the unemployment rate has stayed low," the Fed's policy-making committee said in a statement.
The Fed also expected U.S. inflation on a 12-month basis to "move up this year and to stabilize" around the central bank's 2 percent target over the medium term.
On the earnings front, of the S&P 500 companies that have reported as of Friday morning, 78 percent have beaten bottom-line expectations, while 80 percent have surpassed sales estimates, according to Thomson Reuters.
The past week saw mixed corporate earnings reports from some of the most watched companies.
Exxon Mobil reported fourth-quarter earnings of 88 U.S. cents per share, excluding the impacts of the U.S. tax reform and impairments, falling far short of market expectations.
Apple on Thursday posted quarterly revenue of 88.3 billion dollars, an increase of 13 percent from the year-ago quarter and an all-time record, and quarterly earnings per diluted share of 3.89 dollars, up 16 percent, also an all-time record.
However, the company reported weaker-than-expected iPhone unit sales and gave a lower-than-expected revenue forecast.
Google parent company Alphabet reported quarterly earnings per share that missed Wall Street expectations.
The losses by Apple and Alphabet offset gains by Amazon. The company reported quarterly revenue of 60.5 billion dollars, higher than market estimates.
For the week, the blue-chip Dow declined 4.1 percent, and the broader S&P 500 lost 3.9 percent, while the tech heavy Nasdaq decreased 3.5 percent.
The Dow Jones industrial average plunged 665.75 points, or 2.54 percent to close at 25,520.96, the worst day since June 2016. The S&P 500 fell 2.12 percent to finish at 2,762.13, the biggest one-day fall since September 2016. The Nasdaq Composite dropped 1.96 percent to close at 7,240.95, the worst single-day performance since August 2017.
Analysts said interest rates were the top story throughout the week. On Friday, the 10-year Treasury yield jumped to as high as 2.85 percent, a four-year high, putting pressure on the stocks. The 30-year yield rose to its highest level since March.
Rising bond yields are traditionally seen as bad for stocks as it means large companies will have to spend more to finance their debts as interest rates increase.
On the economic front, total nonfarm payroll employment increased by 200,000 in January, and the unemployment rate stayed unchanged at 4.1 percent, stronger than market expectations, the U.S. Bureau of Labor Statistics said Friday.
Average hourly earnings posted a 0.3 percent gain for the month and an annualized gain of 2.9 percent, said the bureau.
rk interest rate unchanged at 1.25 to 1.5 percent after its two-day meeting, while giving an upbeat assessment of recent U.S. economic growth.
"Gains in employment, household spending, and business fixed investment have been solid, and the unemployment rate has stayed low," the Fed's policy-making committee said in a statement.
The Fed also expected U.S. inflation on a 12-month basis to "move up this year and to stabilize" around the central bank's 2 percent target over the medium term.
On the earnings front, of the S&P 500 companies that have reported as of Friday morning, 78 percent have beaten bottom-line expectations, while 80 percent have surpassed sales estimates, according to Thomson Reuters.
The past week saw mixed corporate earnings reports from some of the most watched companies.
Exxon Mobil reported fourth-quarter earnings of 88 U.S. cents per share, excluding the impacts of the U.S. tax reform and impairments, falling far short of market expectations.
Apple on Thursday posted quarterly revenue of 88.3 billion dollars, an increase of 13 percent from the year-ago quarter and an all-time record, and quarterly earnings per diluted share of 3.89 dollars, up 16 percent, also an all-time record.
However, the company reported weaker-than-expected iPhone unit sales and gave a lower-than-expected revenue forecast.
Google parent company Alphabet reported quarterly earnings per share that missed Wall Street expectations.
The losses by Apple and Alphabet offset gains by Amazon. The company reported quarterly revenue of 60.5 billion dollars, higher than market estimates.
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