Highlights
Stocks dropped Friday in an abrupt profit-taking move out of chips and other stocks that have propelled the major averages to record highs with the Nasdaq hit especially hard. Investors appeared to be rotating out of technology and momentum plays into defensive sectors but losses were broad-based. Stocks were hurt by rising bond yields after a surprisingly strong jobs report raised expectations for actual rate increases this year.
The Dow Jones industrial average lost 1.4 percent as it retreated from Thursday's record high. The S&P 500 fell 2.6 percent and the Nasdaq was off a remarkable 4.2 percent. WTI crude oil futures declined while and the dollar and bond yields rose on the higher interest rate outlook.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.