US: Wall Street ends sharply lower with tech, financials
MAJOR US stock indexes ended sharply lower on Friday (Oct 20), with technology and financial shares among the biggest drags, as investors worried about more interest rate hikes and the Israel-Hamas conflict spreading.
All of the S&P 500 index’s 11 sectors fell in broad-based selling.
The KBW regional banking index was down sharply, while shares of Regions Financial slid to their lowest since March 2020.
“That whole sector is under a cloud, with higher rates. We might not have that soft landing and that’s going to hurt,” said Alan Lancz, president of Alan B Lancz & Associates, an investment advisory firm in Toledo, Ohio.
The benchmark 10-year Treasury yield fell on Friday, a day after crossing 5 per cent for the first time since July 2007 in the wake of comments by Federal Reserve chair Jerome Powell. He said the US economy’s strength and tight labour markets could require tougher borrowing conditions to control inflation.
Investors will also likely keep a close eye on Middle East events over the weekend, Lancz said. “Investors are going to be cautious” going into the weekend, he said.
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According to preliminary data, the S&P 500 lost 54.48 points, or 1.27 per cent, to end at 4,223.52 points, while the Nasdaq Composite lost 202.46 points, or 1.54 per cent, to 12,983.81. The Dow Jones Industrial Average fell 291.83 points, or 0.87 per cent, to 33,122.34.
Israel levelled a northern Gaza district on Friday.
SolarEdge shares slumped after it warned of significantly lower revenue in the fourth quarter.
The third-quarter US earnings season is well under way, with 86 companies in the S&P 500 having reported. REUTERS
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