Nasdaq drops 2.7%, Dow sinks 450 points in losing week
Bitcoin dropped below the $40K level
Selling accelerated for U.S. equities during the final hour of trading as tech weakness continued to roil the broader market sending stocks lower for the day and week.
The Nasdaq Composite fell 2.7% and the S&P 500 was lower by 1.8%, while the Dow Jones Industrial Average fell 450 points or 1.3%.
All three of the major averages posted the worst weekly drop since March 2020 for the Nasdaq and S&P, the worst since October 2020 for the Dow.
|I:DJI||DOW JONES AVERAGES||33833.61||+168.59||+0.50%|
|I:COMP||NASDAQ COMPOSITE INDEX||13238.523923||+133.63||+1.02%|
The selling continued in technology stocks, with Netflix down more than 21% after posting weaker-than-expected subscriber growth. The drop is the worst percentage loss in nearly a decade.
Elsewhere, chip stocks Nvidia and AMD fell, along with Apple.
|AMD||ADVANCED MICRO DEVICES INC.||121.05||+3.22||+2.73%|
Intel shares ended little changed after being higher for most of the session after announcing plans to build a $20 billion plant in Ohio.
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Peloton shares recovered after hitting a two-year low. CEO John Foley disputed a report that the company is pausing bike and Tread production as demand slips. The stock gained 11.7%.
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|PTON||PELOTON INTERACTIVE INC.||8.22||+0.12||+1.48%|
The first week of fourth-quarter earnings season ended Friday with oil services giant Schlumberger which said profits jumped 86% to $0.41 per share.
Consumer finance firm Ally Financial said profits of $1.79 per share were down from $1.82 in the same period a year ago partly tied to costs related to the acquisition of Fair Square Financial.
|ALLY||ALLY FINANCIAL INC.||28.40||-0.12||-0.42%|
In automakers, Toyota announced it will curb production due to shortages of key parts. The automaker said it will suspend production at 11 plants in Japan for three days, on top of reductions planned in February. Those cuts mean it will fall short of the 9 million vehicles it had targeted.
|TM||TOYOTA MOTOR CORP.||146.84||+1.48||+1.02%|
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Cryptocurrencies were also weaker as Bitcoin fell below the $40,000 level. The Federal Reserve on Thursday released a highly anticipated report on central bank digital currencies that suggested it is leaning toward having banks and other financial firms, rather than the Fed itself, manage digital accounts for customers.
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Additionally, Robinhood Markets is rolling out crypto wallets to a 1,000 users, allowing them to send and receive cryptocurrencies through their brokerage accounts, according to a company blog post.
|HOOD||ROBINHOOD MARKETS INC.||9.50||+0.10||+1.06%|
On the economic calendar, the Conference Board reported its Leading Economic index for Decembe which rose 0.8% in line with estimates.
In commodities, oil ended the session down 2.2% to $85.14 per barrel.
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FOX Business' Ken Martin and The Associated Press contributed to this report.