The Nasdaq 100 index plunged in the Friday trading session, marking April as its worst month since the 2008 global financial crisis.
The technology-heavy benchmark declined 4.47% or 601.25 points to the 12,854.80 mark, its fourth-straight week of losses. Correspondingly, it skidded 15.20% or 2,304.78 points in the past month.
The index remained under pressure from rising rates, and mounting inflation, denting investors’ risk sentiment.
At the same time, the steep decline follows underperformance from large tech companies. For instance, streaming giant Netflix edged down 51.38% or 201.14 points over the last month.
Likewise, the leading e-commerce firm Amazon lost 26.18% or 881.30 points. Then, Facebook parent Meta Platforms plummeted 14.29% or 33.42 points.
Consequently, Nasdaq 100 slipped 22.10% or 3,646.97 points since the start of the year. Stocks dropped hard since their often-elevated valuations, and the promise of future growth became less attractive in a rising-rate environment.
Strategists explained that market participants are often agitated on soaring cost pressures and uncertain outlooks from the largest technology names.
Subsequently, investors looked forward to Wednesday, when the Federal Open Market Committee will state monetary policy. They expected the Fed to deliver a 50 basis point hike and a hawkish message.
Moreover, traders also kept an eye close to the release of April’s jobs report on Friday. They expected the economic indicator to drop 380,000 from the previous figure of 431,000.
Eventually, the earnings season is now more than halfway finished. Then, a number of companies would post results this week, including a line of consumer-focused restaurant and travel companies.
Pfizer, Airbnb, Lyft, Yum Brands, Uber, eBay, and TripAdvisor are just some of the names on deck.
Stock futures rebound as Nasdaq 100 plunge
Accordingly, US stock index futures slightly rose after the dampened movement of the Nasdaq 100.
Futures tied to the Dow Jones Industrial Average added 0.52% or 171.00 points to the 33,053.00 mark. Similarly, S&P 500 contracts increased 0.55% or 22.50 points to the 4,149.75 mark. Eventually, Nasdaq 100 jumped 0.70% or 90.00 points to the $12,942.25 mark.
The major averages decelerated last Friday, inflating April’s losses. As a result, the DJIA shed 2.77% or 939.18 points, posting its fifth-straight negative week.
Then, the S&P 500 slumped 3.63% or 155.57 points, its worst day since June 2020. Like the Nasdaq 100, the benchmark delivered its fourth-straight negative week.
Correspondingly, the Wall Street indexes registered their lowest closing levels of the year.
