Dow falls 980 points, S&P, Nasdaq crater 2%+ on rate hike fears

The yield on the 10-Year Treasury nears 3%

U.S. stocks fell as selling accelerated during the final hour of trading Friday. Investors took in a mixed batch of corporate earnings and weighed ongoing concerns that interest rates will increase faster than expected.  

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 30775.43 -253.88 -0.82%
SP500 S&P 500 3785.38 -33.45 -0.88%
I:COMP NASDAQ COMPOSITE INDEX 11028.735703 -149.16 -1.33%

The Dow Jones Industrial Average fell 980 points, or 2.8%, while the S&P 500 and Nasdaq Composite dropped 2.7% and 2.5%, respectively. 

Federal Reserve Chairman Jerome Powell, on Thursday, said policymakers would likely move faster than previously stated to tackle high inflation. He also warned sharp interest rate increases are likely in coming months. Bond yields, which hit the highest level since 2018, eased with the 10-year Treasury hovering at 2.90%.

Jerome Powell

Federal Reserve Chair Jerome Powell  (AP Photo/Jacquelyn Martin, File / Associated Press)

In earnings news, Dow member Verizon fell after reporting a drop in subscribers and giving a muted outlook. 

Ticker Security Last Change Change %
VZ VERIZON COMMUNICATIONS INC. 50.75 -0.14 -0.28%

American Express shares also saw headwinds after first-quarter profits fell roughly 6% from a year earlier, but the company saw a 30% jump in spending on its namesake cards in the quarter as its cardholders returned to their habits of shopping, traveling and dining.

The New York-based company posted a profit of $2.1 billion, or $2.73 a share, down from $2.24 billion, or $2.74 a share, a year earlier. Last year's results had a one-time boost to AmEx's results, as the company released some of its reserves it had set aside to cover potential losses earlier in the pandemic.

Ticker Security Last Change Change %
AXP AMERICAN EXPRESS CO. 138.63 -0.32 -0.23%

Gap Inc. shares sank after the company slashed its forecast for quarterly sales, blaming execution challenges at its Old Navy brand. Gap also said the head of its Old Navy brand, Nancy Green, was leaving the company and that company CEO Sonia Syngal would lead the team until a replacement is named.

Ticker Security Last Change Change %
GPS GAP INC. 8.24 -0.52 -5.94%

Snap shares are in focus after reporting daily users grew 18% to 332 million during the first quarter compared to the year-ago period. 

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Ticker Security Last Change Change %
SNAP SNAP INC. 13.12 -0.83 -5.98%

In other news, Disney shares are heading for a weekly loss of nearly 7% after lawmakers in the state of Florida voted to strip the media giant of its special tax status. 

DISNEY STOCK TUMBLES AMID FLORIDA BILL CONTROVERSY

Ticker Security Last Change Change %
DIS THE WALT DISNEY CO. 94.47 -1.16 -1.21%

Oil prices dipped on concerns COVID-19 lockdowns in China are putting a dent in demand.

Ticker Security Last Change Change %
USO UNITED STATES OIL FUND L.P. 80.36 -2.57 -3.10%
BNO UNITED STS BRENT OIL FD LP UNIT 32.74 -0.74 -2.21%

U.S. West Texas Intermediate (WTI) crude futures declined to $102.07 a barrel. Brent futures slid to $106.65 a barrel. 

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NYSE

Specialist Anthony Rinaldi, left, and trader Timothy Nick work on the floor of the New York Stock Exchange Oct. 30, 2019.  (AP Photo/Richard Drew / AP Newsroom)

In economic news, IHS Markit reported its flash manufacturing and services PMIs for April expanded at a quicker pace than expected this month, rising to 59.7, while the services portion dipped to 54.7. A reading above 50 indicates an expanding sector.

Bitcoin slipped below the $40,000 level. 

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FOX Business' Ken Martin and The Associated Press contributed to this report.