U.S. stocks sank Friday with the NASDAQ Composite notching its worst month since 2008, as Amazon became the latest victim in the technology-led selloff.
The Dow Jones Industrials swooned 939.18 points, or 2.8%, to 32,977.21.
The S&P 500 crumbled 155.57 points, or 3.6%, to 4,131.93, also closing at a fresh low
The NASDAQ Composite failed 536.89 points, or 4.2%, to 12,334.64, weighed down by Amazon’s post-earnings plunge.
The NASDAQ fell 13.3% in April, its worst monthly performance since October 2008 in the throes of the financial crisis. The S&P 500 lost 8.8%, its worst month since March 2020 at the onset of the COVID pandemic. The Dow was down 3.9% on the month.
Amazon on Friday sunk about 14% — its biggest drop since 2006 — after the e-commerce giant reported a surprise loss and issued weak revenue guidance for the second quarter.
Apple shares fell more than 3% after management said supply chain constraints could hinder fiscal third-quarter revenue.
Intel also reported earnings Thursday evening. The stock fell 6.7% after the company issued weak guidance for its fiscal second quarter.
Stocks closed out a dismal month as investors have contended with a slew of headwinds, from the Federal Reserve’s monetary tightening, rising rates, persistent inflation, COVID case spikes in China and the ongoing war in Ukraine.
Technology stocks have been the epicenter of the April selloff as high interest rates hurt valuations, and supply chain issues stemming from COVID and the war in Ukraine disrupt business.
Friday wrapped up one of the busiest weeks for the first-quarter earnings season and a particularly intense one for tech companies, which have driven investor sentiment throughout the week.
About 80% of S&P 500 companies have beat quarterly earnings expectations, with about half of the index’s members having reported results so far.
A hot inflation reading Friday underscored the difficult environment. The core personal consumption expenditures price index — the Fed’s preferred inflation gauge — rose 5.2% from a year ago.
Next week, investors are awaiting the Fed’s policy meeting, the April jobs report and a flurry of corporate earnings from the likes of Pfizer, Starbucks, Uber and more.
Treasury prices fell sharply, raising yields to 2.92% from Thursday’s 2.83%. Treasury prices and yields move in opposite directions.
Oil prices let go of $1.21 to $104.15 U.S. a barrel.
Gold prices jumped $6.20 to $1,877.50 U.S. an ounce.
Stocks End Brutal Month, with Dow Fading 900+