All three major benchmarks logged steep weekly losses
What started out as a strong week on Wall Street ended in dismay. The Dow shed a whopping 292 points, while the Nasdaq also logged a triple-digit loss, and the S&P 500 settled deep into red ink. The latter saw its four-week win streak come to an end as well, as all three major indexes registered weekly losses. Rate hike fears came back into play yesterday, after Federal Reserve officials said more work is needed to contain inflation. Meanwhile, the expiration of roughly $2 trillion in options contracts today helped the Cboe Volatility Index (VIX) surge and subsequently snap an eight-week losing streak.
Continue reading for more on today's market, including:
- Why Meta Platforms stock took a tumble today.
- Upbeat quarterly results boosted this software stock.
- Plus, unpacking FL's post-earnings surge; Starbucks to cut executive role; and rookie trading mistakes to avoid.
The Dow Jones Average (DJI - 33,706.74) shed 292.3 points, or 0.9% for the day, and 0.2% for the week. Johnson & Johnson (JNJ) led the gainers, adding 1.5%. Meanwhile, Boeing (BA) paced the laggards, falling 3.4%.
The S&P 500 Index (SPX - 4,228.48) dropped 55.3 points, or 1.3% for the day, and 1.2% for the week. Meanwhile, the Nasdaq Composite (IXIC - 12,705.22 ) fell 260.1 points, or 2% for the session, and 2.6% for the week.
Lastly, the Cboe Market Volatility Index (VIX - 20.60) added 1 point, or 5.3% for the day, and 5.6% for the week.
5 Things to Know Today
- General Motors (GM) announced it will reinstate its quarterly cash dividend, and is increasing the size of its share repurchases to $5 billion of common stock.(CNBC)
- Wayfair (W) plans to lay off 870 employees, or about 5% of its global workforce, as it looks into substantially reducing third-party labor costs. (MarketWatch)
- Foot Locker stock surged on earnings that topped expectations
- Starbucks announced it will eliminate is COO position in October.
- The latest Market Mashup dives into rookie options trading mistakes.
Gold Marks Worst Losing Streak Since July
Oil futures settled higher on Friday, after data from the Energy Information Administration (EIA) showed strong demand for the commodity, with Russia finding new buyers. Plus, a lack of progress on the Iran nuclear deal boosted black gold. September-dated crude added 27 cents, or 0.3%, to settle at $90.77 per barrel on the day, but still shed 1.4%.for the week.
Meanwhile, gold prices fell 2.9% and for a fifth consecutive session, marking the precious metal's worst losing streak since July. A strong U.S. dollar and rising Treasury yields continued to hurt prices. December-dated gold lost $8.30, or 0.8%, to close at $1,762.90 an ounce.