By Damian J. Troise and Alex Veiga Associated Press
The Dow Jones Industrial Average slumped more than 900 points Friday as another sharp sell-off led by technology added to Wall Street’s losses in April, leaving the S&P 500’s with its biggest monthly skid since the start of the pandemic.
The benchmark S&P 500 fell 3.6% and finished April with an 8.8% loss, its worst monthly slide since March 2020. The Dow slumped 2.8%.
The Nasdaq composite, heavily weighted with technology stocks, bore the brunt of the damage this month, ending April with a 13.3% loss, its biggest monthly decline since the 2008 financial crisis.
A sharp drop in Amazon weighed on the market after the internet retail giant posted its first loss since 2015.
Major indexes shifted between slumps and rallies throughout the week as the latest round of corporate earnings hit the market in force. Investors have been reviewing a particularly heavy batch of financial results from big tech companies, industrial firms and retailers.
The volatile week caps off a dismal month for stocks as traders fret about the tough medicine the Federal Reserve is using in its fight against inflation: higher interest rates. That will increase borrowing costs across the board for people buying cars, using credit cards and taking out mortgages to buy homes.
The S&P 500 fell 155.57 points to 4,131.93. The Dow dropped 939.18 points to 32,977.21. The Nasdaq slid 536.89 points to 12,334.64.
Big Tech has been leading the market lower all month as traders shun the high-flying sector. Tech had posted gigantic gains during the pandemic and now is starting to look overpriced, particularly with interest rates set to rise sharply as the Fed steps up its fight against inflation.
Internet retail giant Amazon slumped 14%, one of the the biggest decliners in the S&P 500, after reporting a rare quarterly loss and giving investors a disappointing revenue forecast. The weak update from Amazon comes as Wall Street worries about a potential slowdown in consumer spending along with rising inflation.
Prices for everything from food to gas have been rising as the economy recovers from the pandemic and there has been a big disconnect between higher demand and lagging supplies. Russia’s invasion of Ukraine has only added to inflation worries as it drives price increases for oil, natural gas, wheat and corn.
The Commerce Department on Friday reported that an inflation gauge closely tracked by the Federal Reserve surged 6.6% in March compared with a year ago, the highest 12-month jump in four decades and further evidence that spiking prices are pressuring household budgets and the health of the economy.