US Equities Experience Sharp Sell-Off as Tech Stocks Face Steepest Weekly Loss in 17 Months
In a tumultuous week for the stock market, US equities experienced a sharp sell-off on Friday, with tech stocks facing the biggest weekly loss in 17 months. Tensions in the Middle East and concerns about interest rates contributed to the decline, sending the S&P 500 index down 0.9%. This marked the sixth straight session of losses and the third straight week of decline for the index.
The Nasdaq 100 fared even worse, dropping 2.1% and recording its deepest weekly drop since November 2022. The Cboe Volatility Index surged close to 19, indicating heightened market uncertainty.
Tech giants Nvidia Corp., Meta Platforms Inc., and Amazon.com Inc. were among the major contributors to the losses in both stock indexes on Friday. The S&P 500 index is now more than 5% below its March 28 closing high, raising concerns among investors about the future direction of the market.
The sell-off was driven by a combination of factors, including worries about inflation and interest rates, as well as geopolitical tensions in the Middle East. Investors are closely watching developments in the region and how they may impact global markets.
Despite the recent volatility, some analysts remain optimistic about the long-term prospects of the market. They point to strong corporate earnings and economic growth as reasons to believe that the sell-off may be a temporary setback rather than a long-term trend.
As investors continue to navigate the uncertainties in the market, it is clear that the coming weeks will be crucial in determining the direction of US equities and whether tech stocks can bounce back from their recent losses.
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