The story continues with a Friday sell-off after the cluster of macro economic data, central bank decisions and mega-cap tech earning reports was digested by the markets. It then made its main volume trading day today after all the data was fully interpreted. Going into next week, short sellers may also be mindful as dips can be bought and then they won't be in business for very long.
U.S. equities plummeted Friday as a brutal tech liquidation drove the Nasdaq down nearly 3% and the Dow Jones Industrial Average finished 1.09% lower. Sentiment shifted sharply defensive as heavyweights cratered on disappointing guidance while lingering inflation concerns kept pressure on risk assets.
Tech Selloff Hammers Semiconductor Stocks
Intel and Reddit shares cratered 29% each after issuing weak fourth-quarter outlooks, sparking a massive retreat in semiconductor and growth names. The selloff hammered Advanced Micro Devices, which slid 13%, while Qualcomm and Arm Holdings dropped 12% and 11%, respectively. Market cap movers were dominated by the sector retreat as investors aggressively disposed of high-valuation positions following the disappointing forecasts.
Energy Profits Surge Amid Oil Volatility
Crypto giant Binance was hit by a $6.3 billion hack linked to North Korea, sending Coinbase, strategy and related stocks into a tailspin during the broader market retreat. In commodities, gold plunged to its lowest price in a year despite renewed Iran jitters as technical supports failed under a bearish impulse. Meanwhile, energy majors ExxonMobil and Chevron reported massive profits of $15.4 billion and $9.9 billion, respectively, as BP prioritized debt reduction amid soaring cash flow.
Federal Reserve Signals Further Rate Hikes
Federal Reserve official Lorie Logan stated the central bank likely needs at least two more rate hikes, warning that pausing does not change the policy destination. This hawkish stance coincided with mounting pressure on U.S. affordability as American workers find take-home pay is failing to keep pace with inflation.
When futures markets open on Sunday, it should be interesting after Brent crude oil trading at a new high of $118 a barrel today. Watch Monday's Manufacturing PMI and ISM prints for further economic direction.
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