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Stocks experienced a decline on Friday, with the Dow Jones Industrial Average and S&P 500 both closing lower, impacted by Adobe’s disappointing earnings report. The Nasdaq also saw losses, potentially heading toward levels not seen since last fall.
Meanwhile, Nvidia fluctuated throughout the day and ended with a slight loss, while Tesla managed to stabilize after recent declines. Energy and utilities sectors gained, while technology and communication services lagged. The Russell 2000, representing small-cap stocks, saw a modest increase, and options expired on Friday.
Economic data showed a contraction in manufacturing activity and slightly lower consumer sentiment for March. Investors are awaiting Federal Reserve Chair Jerome Powell’s remarks following the Fed’s policy announcement on Wednesday, with expectations that interest rates will remain unchanged.
Despite the downturn, the Innovator IBD 50 ETF rose, and the yield on the 10-year Treasury note increased slightly. Within the Dow Jones stocks, Nike faced declines, while Boeing, JPMorgan Chase, Merck, and Caterpillar finished higher. Adobe’s stock plummeted nearly 14% after its earnings report, while GigaCloud Technology surged over 23% on strong quarterly results.
Nvidia, part of the “Magnificent Seven” stocks, struggled to maintain gains ahead of its upcoming AI conference. Tesla, although still in a downtrend, managed to avoid further declines. Looking ahead, Accenture, Lululemon, Darden Restaurants, and KB Home are among the companies reporting earnings next week.
However, Smartsheet experienced a drop due to a disappointing sales outlook, while Jabil and Ulta Beauty also saw declines. On a positive note, FDA approval for its drug led to an 11% surge in shares for Madrigal Pharmaceuticals.
