The S&P 500 fell almost 0.9% to below 5K while the Nasdaq slid 2% on Friday, as Nvidia and Netflix dragged along with woes linked to geopolitical tensions and persistent inflation. Netflix sank 9% after its Q2 revenue guidance disappointed. Nvidia tumbled nearly 10% to book the biggest market-cap loser of the week. Other megacaps including Microsoft, Apple, Amazon and Meta also underperformed. Tesla lost 1.9%, a sixth consecutive session of declines, amid new security concerns regarding its vehicles. On the other hand, Dow Jones added 211 points boosted by a 6.1% gain in American Express after earnings and revenue beat expectations. Procter & Gamble gained 0.5% despite its quarterly sales came below forecasts. On the week, the S&P 500 fell 3.8%, its worst week in almost six months. The Nasdaq ended the week 6.1% lower to mark its longest losing streak over a year and the Dow Jones lost 0.9%.
Frankfurt's DAX 40 index managed to recover some of its early losses, closing 0.5% lower at 17,750 points on Friday to remain around an over six-week low. Meanwhile, markets digested more hawkish remarks from Federal Reserve officials. New York Fed President John Williams emphasized that there is no urgency to decrease interest rates, while his colleague Raphael Bostic suggested that policy easing is unlikely until the end of the year. Neel Kashkari also said that policymakers could potentially maintain rates at their current levels throughout the year. On the economic data front, German producer prices experienced a 2.9% year-on-year decline in March, marking the slowest decrease in eight months.
The Nikkei 225 Index plunged 2.66% to close at 37,068 while the broader Topix Index dropped 10.91% to 2,623 on Friday, with Japanese shares closing at two-month lows as risk assets sold off globally following reports that Israel carried out strikes against Iran. Japanese shares also tracked another weak session on Wall Street as hawkish commentary from Federal Reserve officials further dented sentiment around interest rate cuts. In Japan, data showed that the headline inflation rate edged lower to 3.7% in March from 3.8% in February, while the core inflation rate slowed more than expected to 2.6%. Technology stocks led the selloff, with sharp losses from Tokyo Electron (-8.7%), Disco Corp (-8%), Socionext (-6.6%), Lasertec (-8.4%) and Advantest (-4.4%). All other sectors declined, including heavyweight auto, retail and industrial stocks. The Nikkei and Topix indexes lost 6.21% and 4.82%, respectively, this week, with the Nikkei posting its sharpest weekly fall since March 2020.
The S&P/ASX 200 Index dropped 0.98% to 7,567 on Friday, closing at its lowest levels in two months and taking cues from a weak lead on Wall Street overnight as hawkish commentary from Federal Reserve officials further dented sentiment around interest rate cuts. Minneapolis Fed President Neel Kashkari called for patience in rate reductions, saying the first move may not take place until 2025. In Australia, data released Thursday showed that the unemployment rate edged up to 3.8% in March from 3.7% in February, supporting a dovish view on domestic monetary policy. Heavyweight financial and mining stocks led the selloff, with losses from Commonwealth Bank (-1.1%), Macquarie (-1.9%), Rio Tinto (-1.2%), Fortescue (-2.4%) and BHP Group (-1%). Meanwhile, gold stocks rose on safe-haven demand, while energy stocks were flat.
