The stock market plunged on Friday, with the S&P 500 shedding 3.6% and the Nasdaq down an eye-popping 4.2%.
Why it matters: The market is reflecting increasing uncertainty over whether the Federal Reserve can engineer a soft landing as it embarks on an aggressive rate-hiking plan, and economic growth falters.
- As earnings roll in, warning signs from corporate heavyweights haven’t helped assuage worries about the economy. Amazon reported its first quarterly loss in seven years, and Apple warned that it may take a sales hit of up to $8 billion because of supply chain snarls.
By the numbers: The S&P, the benchmark U.S. index, is down 8.8% in April, making it the worst monthly decline since the COVID crisis hit in early 2022.
- The index is down 13.3% this year, which would put it on track for the market’s worst showing since 2008.
What they’re saying: “[D]isappointing guidance from technology giants…have exacerbated concern that a decidedly more hawkish Fed, coupled with still intractable supply chain issues, and rising energy prices may make the hope of a ‘soft landing’ from the Fed more elusive,” Quincy Krosby, chief equity strategist for LPL Financial, wrote in a research note.
- Amazon shares led the downdraft, falling 14% on Friday, their worst day since 2006, CNBC.com reports. Apple was down 3.7%.