BEIJING – Shares fell again on Wall Street on Friday and are headed for another week of decline after a massive decline two days ago. The S&P 500 fell 1.7% and is now down 20% from a record high in January. If the index closes at this level or lower, it will enter the bear market for the first time since the beginning of the pandemic. The S&P 500, the basis for many index funds, is heading for its seventh consecutive weekly decline. The Dow Jones Industrial Average fell 1.4 percent and the tech Nasdaq fell 2.4 percent. Bond yields fell.
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NEW YORK (AP) – Shares fell in late morning trading on Wall Street on Friday and are headed for another week of decline after a massive decline two days ago.
The S&P 500 fell 0.7% at 11:27 a.m. Eastern Time and is on track for its seventh consecutive weekly decline as it approaches bear market entry this week. The Dow Jones Industrial Average fell 211 points, or 0.7%, to 31,041, and the Nasdaq fell 0.9%.
All three are heading for a 3% drop or more for the week.
Technology stocks fell sharply and weighed heavily on the market. Applied Materials, which manufactures equipment for chip production, fell 5.1%. The technology sector was particularly troubled and caused many of the large market fluctuations during the week. High stock prices for many companies in the sector give more leverage to attract the wider market up or down.
Bond yields fell. Yields on 10-year bonds fell to 2.81% from 2.85% later on Thursday.
The stock market remains stuck amid worries about how inflation is putting pressure on businesses and consumers. Investors are also concerned about the Federal Reserve’s plan to aggressively raise interest rates and whether this will help mitigate the effects of inflation or limit growth too much and plunge the economy into recession.
Concerns about inflation are growing with Russia’s invasion of Ukraine, which has boosted energy prices and some key food items. China, the world’s second-largest economy, has suffered another blow from blockades in key cities over the COVID-19 case, but a surprise cut in Chinese government interest rates has at least temporarily eased some concerns.
Markets in Asia and Europe made solid profits.
Wall Street is reaping the rewards of retailers this week. The sector is a key focus as investors try to measure how much inflation is hurting the company’s business and whether higher prices for everything from food to clothing are forcing consumers to tighten their spending.
Both retail giants Target and Walmart warned this week to cut financial inflation. Discount retailer Ross Stores fell 22.2 percent on Friday after lowering its profit forecast and citing rising inflation.
Several retailers were awarded for encouraging results. Shoe maker Ugg Deckers Outdoor rose 13.1 percent and Foot Locker rose 1.7 percent after beating analysts’ earnings forecasts.
Investors continue to watch the Fed for hints of further interest rate hikes to cool inflation, which has been at its peak for four decades. Fed Chairman Jerome Powell said this week that the US Federal Reserve could take more aggressive action if price pressures fail to ease.
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Wall Street is approaching a bear market at the end of a tough week
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