After ending the previous session sharply lower, U.S. stocks turned in a mixed performance during trading on Friday. While the Nasdaq rebounded after yesterday’s sell-off, the Dow showed a notable move to the downside.
The major averages finished the day on opposite sides of the unchanged line. The Nasdaq climbed 99.07 points or 0.8 percent to 13,215.24, but the Dow slid 234.33 points or 0.7 percent to 32,627.97 and the S&P 500 edged down 2.36 points or 0.1 percent to 3,913.10.
For the week, the major averages all moved lower. The Dow fell by 0.5 percent, while the Nasdaq and the S&P 500 both declined by 0.8 percent.
The rebound by the Nasdaq came as traders look to pick up technology stocks at reduced levels following the 3 percent nosedive by the tech-heavy index on Thursday.
Traders kept a close eye on activity in the bond market after a spike in treasury yields contributed to yesterday’s sell-off by tech stocks.
Yields pulled back sharply at the start of trading but subsequently rebounded and spent the rest of the session lingering near the unchanged line.
Meanwhile, a steep drop by shares of Nike (NKE) weighed on the Dow after the athletic apparel and footwear giant reported fiscal third quarter earnings that beat expectations but weaker than expected revenues.
Financial stocks also moved to the downside after the Federal Reserve said a temporary change to the supplementary leverage ratio, or SLR, for depository institutions will expire as scheduled on March 31, 2021.
The temporary change, which allowed banks to hold less capital against Treasuries and other holdings, was made to provide flexibility for depository institutions to provide credit to households and businesses in light of the COVID-19 pandemic.
Sector News
Natural gas stocks showed a substantial move to the upside on the day, driving the NYSE Arca Natural Gas Index up by 2.3 percent.
The rally by natural gas stocks came amid a notable increase by the price of the commodity, with natural gas for April delivery jumping $0.054 or 2.2 percent to $2.535 per million BTUs.
Significant strength also emerged among retail stocks, as reflected by the 1.7 percent gain posted by the Dow Jones U.S. Retail Index.
Biotechnology and semiconductor stocks also turned in strong performances, contributing to the advance by the tech-heavy Nasdaq.
On the other hand, banking stocks came under pressure following the news from the Fed, with the KBW Bank Index falling by 1.7 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan’s Nikkei 225 Index tumbled by 1.4 percent, while China’s Shanghai Composite Index dove by 1.7 percent.
The major European markets also moved to the downside on the day. The French CAC 40 Index, the German DAX Index and the U.K.’s FTSE 100 Index all slumped by 1.1 percent.
In the bond market, treasuries ended the day nearly unchanged after pulling back off their early highs. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 1.732 percent.
Looking Ahead
Reports on new and existing home sales, durable goods orders, and personal income and spending may attract attention next week along with Congressional testimony by Federal Reserve Chair Jerome Powell.
Business News
Nasdaq Rebounds After Yesterday’s Sell-Off, Dow Closes Firmly In The Red
2021-03-19 20:16:27
