Wall Street closed out its second straight losing week on Friday, giving back some of the gains that had pushed the stock market to an all-time high earlier in the week. The S&P 500 fell 0.6%, marking its third consecutive loss, while the Dow Jones Industrial Average dropped 0.5% and the Nasdaq composite ended 1% lower.
The technology sector was hit hard, with software maker Adobe slumping 13.7% after providing a weak revenue forecast. Other tech giants like Microsoft and Broadcom also saw declines. Communication services stocks, including Meta Platforms and Google parent Alphabet, also contributed to the market’s downturn.
The S&P 500 closed down 33.39 points at 5,117.09, the Dow dropped 190.89 points to 38,714.77, and the Nasdaq gave up 155.36 points to 15,973.17.
The latest pullback for stocks came as traders reviewed reports showing that inflation, while cooling, remains a concern. Consumer sentiment unexpectedly fell in March, with consumers becoming slightly less optimistic about the economy. However, there are expectations that inflation will continue to decrease, which could help stabilize consumer prices.
Inflation remains a key concern for Wall Street, especially as investors hope for the Federal Reserve to start cutting interest rates. The Fed had raised interest rates sharply in 2022 to combat high inflation levels, and reports this week showed that inflation remains stubborn, with consumer prices ticking up to 3.2% in February.
The ongoing uncertainty surrounding inflation, the Fed’s next moves, and the economy has led to a stall in the stock market rally that began in October. Investors are closely watching for any signs of a recession, as well as the Fed’s upcoming forecasts for interest rates.
Bond yields edged higher, and weak financial forecasts from companies like Ulta Beauty and Jabil weighed down the market. Markets in Europe ended mixed, while markets in Asia slipped.
Overall, the market’s performance this week reflects the ongoing challenges and uncertainties facing investors as they navigate a complex economic landscape.
