Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Wall St ends sharply lower, posts weekly losses; Mideast fears increase

Published 10/20/2023, 05:42 AM
Updated 10/20/2023, 09:23 PM
© Reuters. FILE PHOTO: A street sign for Wall Street is seen in the financial district in New York, U.S., November 8, 2021.  REUTERS/Brendan McDermid/File Photo
US500
-
RF
-
AXP
-
IXIC
-
US10YT=X
-
SEDG
-

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks ended sharply lower for the day and week on Friday as investors worried about more interest rate hikes and the Israel-Hamas conflict spreading.

The S&P 500 and Nasdaq fell more than 1% each. All of the S&P 500 index's 11 sectors ended lower in broad-based selling, with technology and financials among the biggest drags.

Israel leveled a northern Gaza district as its conflict with Hamas intensified. The latest outbreak of violence began Oct. 7 with attacks by Hamas militants.

"Geopolitically, with the weekend, investors are going to be cautious and taking money off of the table," said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm in Toledo, Ohio.

The S&P 500 financial index was down 1.6% while the KBW regional banking index fell 3.5%. Shares of Regions Financial (NYSE:RF) slid 12.4% after its profit missed analysts' average estimate.

"That whole sector is under a cloud, with higher rates. We might not have that soft landing and that's going to hurt," Lancz said.

The benchmark 10-year Treasury yield eased on Friday, a day after crossing 5% for the first time since July 2007 in the wake of comments by Federal Reserve Chair Jerome Powell. He said the U.S. economy's strength and tight labor markets could require tougher borrowing conditions to control inflation.

The Dow Jones Industrial Average fell 286.89 points, or 0.86%, to 33,127.28, the S&P 500 lost 53.84 points, or 1.26%, to 4,224.16 and the Nasdaq Composite dropped 202.37 points, or 1.53%, to 12,983.81.

For the week, the Dow was down 1.6%, the S&P 500 fell 2.4% and the Nasdaq slid 3.2%.

The Cboe Volatility index closed at its highest level since March 24.

SolarEdge (NASDAQ:SEDG) shares slumped 27.3% after it warned of significantly lower revenue in the fourth quarter.

Shares of credit card company American Express (NYSE:AXP) fell 5.4% even though its third-quarter profit beat expectations.

The third-quarter U.S. earnings season is well under way, with 86 companies in the S&P 500 having reported. Results from some mid-sized banks have raised concerns that the boost to lenders from the Fed's interest rate hikes was tapering off.

Volume on U.S. exchanges was 11.05 billion shares, compared with the 10.58 billion average for the full session over the last 20 trading days.

© Reuters. FILE PHOTO: A street sign for Wall Street is seen in the financial district in New York, U.S., November 8, 2021.  REUTERS/Brendan McDermid/File Photo

Declining issues outnumbered advancers on the NYSE by a 2.63-to-1 ratio; on Nasdaq, a 2.28-to-1 ratio favored decliners.

The S&P 500 posted no new 52-week highs and 38 new lows; the Nasdaq Composite recorded nine new highs and 420 new lows.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.