NEW YORK – The Dow Jones Industrial Average and other major indexes faced losses on Friday due to Adobe’s earnings-related struggles. The Nasdaq attempted to rebound but seemed to be heading towards levels not seen since the previous fall. Despite this, Nvidia and Tesla had mixed results by the closing bell on the stock market.
The Dow closed 0.5% lower, while the S&P 500 fell by 0.7%. Energy and utilities sectors saw gains, while technology and communication services sectors lagged behind. The Nasdaq ended 1% lower, marking its first consecutive weekly losses since late October.
After a significant drop on Thursday, small caps saw a slight improvement with the Russell 2000 gaining by 0.4%. Economic indicators showed a contraction in manufacturing activity and slightly lower consumer sentiment in March. Investors awaited Federal Reserve Chairman Jerome Powell’s upcoming remarks, with expectations of interest rates remaining unchanged.
Despite lower volume on the NYSE, the Nasdaq saw an increase compared to the previous day. Advancers outnumbered decliners on both exchanges. The Innovator IBD 50 exchange-traded fund rose 0.3%, while the yield on the 10-year Treasury note inched up to 4.31%.
In the tech industry, Adobe faced a nearly 14% decline after its earnings report, impacting the overall market sentiment. Meanwhile, GigaCloud Technology surged over 23% following a strong quarter and positive outlook. Nvidia and Tesla displayed varying performance, with Nvidia ending the day with a small loss.
Looking ahead, companies like Accenture, Lululemon, and Darden Restaurants are preparing for upcoming earnings reports. Smartsheet experienced a drop in stock price due to a slowdown in sales growth, while Jabil and Ulta Beauty saw declines following weak outlooks. Madrigal Pharmaceuticals saw an 11% surge in its stock price after receiving FDA approval for a new drug.
Overall, the market saw a pause in its rally ahead of key events, including the Federal Reserve meeting and major AI conferences. Investors are keeping a close eye on market developments as they navigate through changing economic conditions and corporate earnings reports.