Stocks rocked by rate-hike fears

U.S. equity markets were pressured Friday as the Federal Reserve signaled rate hikes could come as early as next year. 

Ticker	Security	Last	Change	Change %
I:DJI	DOW JONES AVERAGES	41606.18	-15.90	-0.04%
SP500	S&P 500	5634.58	+1.49	+0.03%
I:COMP	NASDAQ COMPOSITE INDEX	17628.061261	+35.93	+0.20%

The Dow Jones Industrial Average fell 532 points, or 1.57%, declining for a fifth straight day, while the S&P 500 and the Nasdaq Composite lost 1.31% and 0.92%, respectively. 

The selling came after St. Louis Fed President James Bullard told CNBC that a rate hike could come next year – ahead of the Fed's 2023 target disclosed Wednesday. The yield on the 10-year note slipped below 1.45% and closed at its lowest level since March 2.

Ticker	Security	Last	Change	Change %
TSLA	TESLA INC.	227.87	+1.09	+0.48%
SQ	BLOCK INC.	67.33	+1.52	+2.30%

Growth stocks including Tesla Inc. and Square Inc., which typically benefit from lower interest rates, outperformed. 

Ticker	Security	Last	Change	Change %
BAC	BANK OF AMERICA CORP.	39.59	+0.46	+1.18%
JPM	JPMORGAN CHASE & CO.	209.44	+1.59	+0.76%

At the same time, bank stocks like Bank of America Corp. and JPMorgan Chase & Co were weaker as lower interest rates reduce their net interest margins. 

Ticker	Security	Last	Change	Change %
NVDA	NVIDIA CORP.	115.59	-1.19	-1.02%
MU	MICRON TECHNOLOGY INC.	88.73	+1.55	+1.78%
INTC	INTEL CORP.	21.47	+0.56	+2.68%

Elsewhere, chipmakers including Nvidia Corp., Micron Technology Inc. and Intel Corp. were mixed after a bipartisan group of U.S. senators proposed a 25% tax credit for investments in semiconductor manufacturing. U.S. chip production has fallen sharply in recent years to 12% of global output, down from 37% in 1990. 

Ticker	Security	Last	Change	Change %
CAI	NO DATA AVAILABLE	-	-	-

In deals, container leasing and management company CAI International Inc. has agreed to be taken over by Japan’s Mitsubishi HC Capital Inc. for $1.1 billion, or $56 per share. The price represents a 47% premium to where shares closed on Thursday. 

Ticker	Security	Last	Change	Change %
EBAY	EBAY INC.	64.88	+0.52	+0.81%

Online marketplace eBay Inc. and Norway’s Adevinta were granted regulatory approval for the approximately $13 billion deal for the former’s classified ads business. EBay will receive $2.5 billion in cash and 540 million Adevinta shares.  

Ticker	Security	Last	Change	Change %
ADBE	ADOBE INC.	515.03	-6.47	-1.24%

In earnings, Adobe Inc. beat on both the top and bottom line as quarterly profit rose 23% year over year. The software maker forecast earnings for the current quarter that were ahead of expectations. 

Ticker	Security	Last	Change	Change %
SWBI	SMITH & WESSON BRANDS	13.17	-0.07	-0.53%

Gun-maker Smith & Wesson Brands Inc. reported sales soared 67% from a year ago to a record of almost $323 million. The company raised its quarterly dividend by 60% to 8 cents per share and announced a new $50 million share buyback program. 

In commodities, West Texas Intermediate crude oil added 60 cents to $71.64 a barrel. Gold, meanwhile, slid $5.90 to $1,767.90 an ounce. The precious metal plunged $109.50 this week.  

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Overseas markets were under pressure. 

Britain’s FTSE 100 paced the decline in Europe, trading down 1.9%, while Germany’s DAX 30 and France’s CAC 40 fell 1.78% and 1.46%, respectively. 

In Asia, Japan’s Nikkei 225 lost 0.19% and China’s Shanghai Composite slipped 0.01%. Hong Kong’s Hang Seng index outperformed, climbing 0.85%.