Financial markets on track for worst week in 2 years

Traders Edward Curran left and Michael Smyth work on the floor of the New York Stock Exchange on Friday. Technology and energy stocks accounted for much of the day's broad slide

Tech companies lead stocks sharply lower in early trading

The Dow Jones industrial average index dropped 666 points during trading on Friday.

The data stoked fears inflation would rise due to higher wages and low unemployment. The 10-year Treasury yield increased to 2.852% on Friday. Rising interest rates in general mean higher borrowing costs for companies. It sets the stage to make credit cards, auto loans and mortgages more expensive.

The Dow Jones Industrial Average lost 668.64 points to close at 25,518.07, the lowest since January 10.

The Dow had lost almost 700 points, or 2.5%, at the closing bell, with weak earnings reported from several American business behemoths, including Exxon Mobil and Google's parent company Alphabet.

Canada's main stock index fell on Friday as weakness in commodity prices fueled a decline in shares of the heavyweight natural resource sectors.

KEEPING SCORE: The Standard & Poor's 500 index fell 29 points, or 1 percent, to 2,792 as of 10:11 a.m.

Carl Tannenbaum, chief economist at Northern Trust, says Friday's employment report shows the economy continues to have a lot of energy.

The U.S. stock market roared out of the blocks in 2018, before being reined in this week by rising bond yields.

NPR's Jim Zarroli reports: "Now, investors are starting to think, maybe things are moving too fast".

Analysts cautioned against reading too much into the market declines, which follow a massive rally in 2017 that was fuelled by a strengthening global economy and high expectations for United States corporate tax cuts.

The stock plunge comes after record-breaking market gains under Trump's first year in office.

"We expected this volatility to be higher and that there would be a correction sometime this winter or spring", Tilley said.

More news: Father of sexually abused girls lunges at Larry Nassar in court

While earnings overall have been strong, some big companies have posted disappointing results.

Google's parent company Alphabet slumped 5.3 per cent after the search giant reported results that missed analysts' forecasts.

Apple declined 3.4 percent after the technology company said it sold 77.3 million iPhones in the last quarter, below the 80 million analysts expected.

The pan-European FTSEurofirst 300 index of leading regional shares lost 0.98 per cent and the STOXX 600 index tumbled 1.07 per cent.

Benchmark U.S. crude slid 41 cents to $65.39 a barrel on the New York Mercantile Exchange.

US crude fell $1.02 to $64.78 per barrel and Brent fell $1.34 to $68.31.

The Nasdaq fell 144 points, or 2 percent, to 7,240.

The dollar rose to 110.28 yen from 109.42 yen on Thursday.

Exxon Mobile sank 5 percent and Chevron lost 1.8 percent.

MSCI's all-country world index of equity performance in 47 countries fell 1.07 pe rcent while its gauge of emerging market stocks lost 1.54 per cent. Hong Kong's Hang Seng index dipped 0.1 percent.

Spot gold dropped 1.4 per cent to $1,329.62 an ounce. The euro weakened to $1.2451 from $1.2502.

Latest News