(RTTNews) – After moving in opposite directions early in the session, the major U.S. stock indexes have all moved to the downside over the course of the trading day on Friday. With the drop, the major averages are giving back ground after ending the previous session at their best closing levels in well over a month.
The tech-heavy Nasdaq has helped to lead the way lower, tumbling by 209.14 points or 1.7 percent to 11,850.47. The S&P 500 has also slid 34.34 points or 0.9 percent at 3,964.61, while the narrower Dow has edged down 104.03 points or 0.3 percent to 31,932.87 after seeing modest strength in early trading.
A steep drop by shares of Snap Inc. (SNAP) continues to weigh on the tech-heavy Nasdaq, with the Snapchat parent plunging by 38.7 percent to a two-year intraday low.
The nosedive by Snap comes after the company reported disappointing second quarter results and declined to provide guidance due amid “incredibly challenging” conditions. Snap also announced plans to “substantially slow” its rate of hiring.
Computer hardware stocks have also shown a substantial move to the downside on the day, dragging the NYSE Arca Computer Hardware Index down by 2.7 percent. The index ended Thursday’s trading at its best closing level in over a month.
Seagate Technology (STX) has helped lead the sector lower after the disk drive maker reported weaker than expected fiscal fourth quarter results and provided disappointing guidance.
Significant weakness is also visible among semiconductor stocks, as reflected by the 2.5 percent slump by the Philadelphia Semiconductor Index. The index is also pulling back off a one-month closing high.
Outside the tech sector, airline and banking stocks are also seeing notable weakness, while some strength remains visible among utilities stocks.
The pullback by the Dow comes as shares of Verizon (VZ) are plunging by 7.2 percent after the telecom giant reported weaker than expected second quarter earnings and lowered its full-year guidance.
The overall weakness on Wall Street comes as traders look ahead to the Federal Reserve’s highly anticipated monetary policy decision next week.
The Fed is widely expected to raise interest rates by at least 75 basis points as part of its ongoing efforts to combat elevated inflation.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Friday. Japan’s Nikkei 225 Index rose by 0.4 percent, while China’s Shanghai Composite Index edged down by 0.1 percent.
Meanwhile, the major European markets all moved modestly higher on the day. While the French CAC 40 Index crept up by 0.3 percent, the U.K.’s FTSE 100 Index and the German DAX Index both inched up by 0.1 percent.
In the bond market, treasuries are extending the notable upward move seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 12.1 basis points at 2.789 percent.