The S&P 500 index persisted in its downward trajectory on Friday, marking its sixth consecutive daily loss, as market sentiment soured due to notable declines in Netflix and Nvidia shares.
Closing below the significant 5,000 level, the S&P 500 recorded a 0.9% drop to settle at 4,966.63 by 16:00 ET (20:00 GMT). Simultaneously, the NASDAQ Composite experienced a 2.1% decline, while the Dow Jones Industrial Average managed to buck the trend, rising by 0.6% or 211 points.
Netflix Inc (NASDAQ: NFLX) encountered a substantial slump following its announcement to discontinue quarterly membership and revenue reporting starting from the first quarter of 2025. Despite posting better-than-expected first-quarter results, Netflix shares plummeted by over 9%.
The tech sector, besides Netflix, faced significant pressure, with giants such as Amazon (NASDAQ: AMZN), Microsoft Corporation (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL), Apple Inc (NASDAQ: AAPL), and Meta Platforms Inc (NASDAQ: META) all registering losses. Meta Platforms Inc (META) suffered a 4% decline after Apple announced its decision to remove Meta’s Instagram and Thread apps from its App Store in China following pressure from Chinese regulators.
NVIDIA Corporation (NASDAQ: NVDA) contributed to the downturn, tumbling by 10% amidst ongoing profit-taking by investors ahead of the company’s upcoming earnings release next month.
Despite the overall market sentiment, American Express (NYSE: AXP) provided a positive highlight, with its stock surging by 6% following the release of first-quarter results that surpassed analysts’ expectations. The financial services giant’s robust performance was fueled by increased spending from its affluent customer base, reflecting diminishing recession concerns.
In other market developments, Paramount Global (NASDAQ: PARA) witnessed a 13% surge in its stock price amid reports of a potential sale to David Ellison’s Skydance Media. However, uncertainties loomed as Sony and Apollo Global Management (NYSE: APO) prepared to make a competitive bid, potentially impacting shareholders.
Tesla Inc (NASDAQ: TSLA) faced a setback, with its stock dipping nearly 2% due to a recall of nearly 3,900 Cybertrucks. The recall was initiated by the US National Highway Traffic Safety Administration due to a defective accelerator pedal pad.
Meanwhile, anticipation surrounded the imminent “halving event” in the Bitcoin market, as the cryptocurrency rebounded after briefly dropping below $60,000. Halving events, occurring approximately every four years, halve the production of bitcoin by miners, subsequently reducing its supply growth rate. This event, marking the fourth halving since Bitcoin’s inception in 2009, is poised to further limit the cryptocurrency’s supply growth rate to just under 2%.