Stocks tumble Friday to post weekly loss, S&P 500 sets off 4-week rally
Stocks fell on Friday as Wall Street’s summer rally faltered and rate hike fears resurfaced, leading major averages to end the week on a sour note.
The S&P 500 slid 1.29% to close at 4,228.48, while the Dow Jones Industrial Average fell 292.30 points, or 0.86%, to 33,706.74. The Nasdaq Composite fell 2.01% to settle at 12,705.22.
For the week, the S&P edged down 1.21%, while the Dow slipped 0.16%. The tech-heavy Nasdaq closed the week down 2.62%.
Friday’s halt to Wall Street’s summer rally came minutes before the Federal Reserve’s July meeting and comments from St. Louis Federal Reserve Chairman James Bullard indicated the central bank would likely continue to raise short-term rates, dampening investor hopes of a slowdown.
Despite the week’s moves, many investors and traders are hoping for a rebound.
“I wouldn’t expect a full reversal back to June lows or anything like that, however, the turmoil we’re seeing today and this week reflects a lot of the bearish case that exists,” FBB said. Capital Partners. Mike Bailey. “I think seeing the market trading sideways or seeing a little break in this rally certainly makes sense based on some of the facts we’re seeing there.”
Meanwhile, Bed Bath & Beyond shares cratered more than 40% after Ryan Cohen sold his entire stake in the retailer. The move appeared to dampen sentiment among stock traders who have been betting big on the company in recent months.
Separately, a notional value of around $2 trillion in options contracts expired on Friday. Option expirations can add volatility to the markets as some holders may be forced to change positions.