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

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	44796.92	+60.35	+0.13%
SP500	S&P 500	6012.89	+25.52	+0.43%
I:COMP	NASDAQ COMPOSITE INDEX	19129.373609	+74.54	+0.39%

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%.

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.	43.98	+0.83	+1.92%

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.	305.21	+3.91	+1.30%

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	NO DATA AVAILABLE	-	-	-

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.	11.60	+0.18	+1.58%

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. 

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Ticker	Security	Last	Change	Change %
DIS	THE WALT DISNEY CO.	116.00	+0.35	+0.30%

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 - USD ACC	72.10	-2.15	-2.90%
BNO	UNITED STATES BRENT OIL FUND - USD ACC	28.99	-0.08	-0.28%

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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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.