Stocks rocked by rate-hike fears
Growth stocks outperformed
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 | 44782 | -128.65 | -0.29% |
SP500 | S&P 500 | 6047.15 | +14.77 | +0.24% |
I:COMP | NASDAQ COMPOSITE INDEX | 19403.947849 | +185.78 | +0.97% |
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. | 357.09 | +11.93 | +3.46% |
SQ | BLOCK INC. | 92.78 | +4.23 | +4.78% |
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. | 47.76 | +0.03 | +0.05% |
JPM | JPMORGAN CHASE & CO. | 249.76 | -0.14 | -0.06% |
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. | 135.34 | -1.58 | -1.15% |
MU | MICRON TECHNOLOGY INC. | 98.20 | -3.60 | -3.54% |
INTC | INTEL CORP. | 23.65 | -0.40 | -1.66% |
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. | 63.17 | -0.12 | -0.19% |
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. | 513.68 | -11.62 | -2.21% |
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 | 13.70 | +0.18 | +1.33% |
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%.