Benchmark US indices nosedived on Friday, January 21, 2022, as they saw broad losses across all stock segments amid Omicron and interest rate increase concerns.
The S&P 500 was down 1.90% to 4,397.73. The Dow Jones fell 1.30% to 34,265.50. The NASDAQ Composite fell 2.72% to 13,768.92, and the small-cap Russell 2000 was down 1.08% to 2,001.96.
The central bank’s anticipated rate hikes weighed on investors’ minds. Last week, Fed chair Jerome Powell had raised serious concern over high inflation. Consumer prices had risen by 7% YoY in December, raising an alarm for policymakers. Tech stocks were hit by rising Treasury bond yields.
Eight out of 11 stock segments of the S&P 500 closed in the red on Friday. The real estate, consumer staples, and utility sectors gained the most. Technology, basic materials, and consumer discretionary stocks were bottom movers.
The Netflix, Inc. (NFLX) stock plunged more than 21% in intraday trading a day after predicting weak subscription growth for the first quarter.
Walt Disney Company (DIS) stock fell more than 6% in intraday trading.
Peloton Interactive, Inc. (PTON) stock rebounded on Friday, gaining over 11% after the CEO refuted the false report about halting production. The stock had declined over 22% on the previous day.
Shares of Intel Corporation (INTC) rose around 1% after the company announced to invest US$20 billion to build two new chipmaking factories in Columbus, Ohio.
In the real estate sector, Prologis Inc. (PLD) surged 1.04%, Crown Castle International Corp. (CCI) jumped 0.84%, and Public Storage (PSA) was up 0.78%. Digital Realty Trust Inc. (DLR) rose 0.49%, and Realty Income Corporation (O) jumped 0.91%.
In consumer stocks, Procter & Gamble Company (PG) stock gained 0.49%, PepsiCo Inc. (PEP) gained 0.62%, and Costco Wholesale Corporation (COST) jumped 0.66%. Philip Morris International Inc (PM) and Mondelez International Inc. (MDLZ) rose 0.97% and 01.45%, respectively.
In the communication services sector, Alphabet Inc (Googl) fell 0.63%, Meta Platform Inc. (FB) declined 2.62%, and Walt Disney Company (DIS) declined 6.66%. Comcast Corporation (CMCSA) and Verizon Communication Inc. (VZ) decreased by 0.59% and 0.31%, respectively.
The global cryptocurrency market was down 11.83% to US$1.78 trillion, as per coinmarketcap.com. Bitcoin (BTC) declined 11.33% to US$38,064.51 in the last 24 hours to Friday evening.
Futures & Commodities
Gold futures declined 0.71% to US$1,829.55 per ounce. Silver futures decreased by 1.89% to US$24.253 per ounce, while copper fell 1.62% to US$4.5080.
Brent oil futures decreased by 1.13% to US$87.38 per barrel and WTI crude futures were down by 1.25% to US$84.47.
The 30-year Treasury bond yields decreased 3.48% to 2.067, while the 10-year bond yields fell 4.82% to 1.746.
US Dollar Futures Index declined 0.10% at US$95.630.