Stocks plunged on Friday, pulling the Dow Jones Industrial Average and S&P 500 down for consecutive weekly declines, as traders weighed a raft of corporate earnings and rising interest rates.
The Dow fell 968 points, or 2.7%, to 33,992.57 for its worst day since 2020. The S&P 500 was 2% lower at 4,288.23, for its lowest day since March. The Nasdaq Composite declined by 2.3% to 12,869.03. Friday’s loss was the biggest for the Dow since Oct. 28, 2020.
Those losses put the Dow down 1.5% for the week, on track for its fourth straight weekly decline and its ninth losing week of the last 11. The S&P 500 was headed for a three-week slide, and was down 2.5% week to date. The Nasdaq was the laggard this week, losing 3.6%.
“Investors appear to be moving away from the TINA ‘there is no alternative’ narrative as of late when it comes to equities,” said Brian Price, head of investment management for Commonwealth Financial Network. ″This is the second straight week of significant outflows from equity mutual funds and days like today are unlikely to change the sentiment moving forward.”
Companies reporting disappointing quarterly results led the market decline Friday. HCA Healthcare dropped 20% and was the worst-performing stock in the S&P 500. The decline came as the company posted weak full-year earnings and revenue guidance.
That led other names in the sector lower. Intuitive Surgical and Universal Health Services lost 13% and 10%, respectively. DaVita fell almost 7% and DexCom fell 5.5%.
Verizon shares fell 6% after the company reported a loss of 36,000 monthly phone subscribers in the first quarter.
Shares of Gap plunged 19% after the company announced the CEO of its Old Navy division, Nancy Green, is leaving the business this week. Gap also slashed its outlook for net sales growth in fiscal 2022.