Stocks faced a downturn on Friday, as the Dow Jones Industrial Average and S&P 500 closed lower due to Adobe’s disappointing earnings report. The Nasdaq also experienced losses, potentially reaching levels not seen since last fall.
Nvidia’s stock fluctuated during the day, ending with a slight loss, while Tesla managed to stabilize after recent declines. The energy and utilities sectors showed gains, whereas technology and communication services lagged behind. The Russell 2000, which represents small-cap stocks, saw a slight increase, with options expiring on Friday.
Economic data revealed a decrease in manufacturing activity and a slightly lower consumer sentiment for March. Investors are eagerly anticipating Federal Reserve Chair Jerome Powell’s remarks post the Fed’s policy announcement on Wednesday, with the expectation that interest rates will remain unchanged.
Despite the market downturn, the Innovator IBD 50 ETF saw an increase, and the yield on the 10-year Treasury note rose slightly. Within the Dow Jones stocks, Nike experienced declines, while Boeing, JPMorgan Chase, Merck, and Caterpillar ended with gains. Adobe’s stock plummeted by almost 14% after the earnings report, while GigaCloud Technology surged more than 23% due to strong quarterly results.
Nvidia, a part of the “Magnificent Seven” stocks, struggled to hold onto gains before its upcoming AI conference. Tesla, although still on a downward trend, managed to avoid further declines. Looking ahead, Accenture, Lululemon, Darden Restaurants, and KB Home are some of the companies reporting earnings next week.
However, Smartsheet experienced a decline due to a disappointing sales outlook, while Jabil and Ulta Beauty also saw decreases. On a positive note, FDA approval for its drug led to an 11% surge in shares for Madrigal Pharmaceuticals.
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