The S&P 500 fell nearly 1% on Friday, but finished the week higher, as investors digested disappointing results from Snap that sent social media shares reeling.
The Dow Jones Industrials faltered 137.61 points to end Friday at 31,899.29.
The S&P 500 dropped 37.32 points to 3,961.63.
The NASDAQ flopped 225.5 points, or 1.9%, to 11,834.11.
Those losses cut into weekly gains for all three major averages, with the Dow closing out the week nearly 2% higher. The S&P 500 advanced about 2.6%, and the NASDAQ capped the week up 3.3%.
An earnings miss from Snap, which sent shares tumbling about 39.1%, halted this week’s NASDAQ rally. Traders, eyeing some better-than-expected results from tech companies, had deliberated whether markets had finally found a bottom.
The results from the Snapchat parent were followed by a slew of analyst downgrades on the stock. Snap’s quarterly report also weighed on other social media and tech stocks, which investors feared could face slowing online advertising sales.
Shares of Meta Platforms tumbled 7.6% and Pinterest fell about 13.5%, while Alphabet lost 5.6%.
Twitter rose 0.8% despite reporting disappointing second-quarter results that missed on earnings, revenue and user growth. The social media company blamed challenges in the ad industry, as well as “uncertainty” around Elon Musk’s acquisition of the company, for the miss.
Verizon was the worst-performing member of the Dow after reporting earnings. The wireless network operator dropped 6.7% after cutting its full-year forecast, as higher prices dented phone subscriber growth.
About 21% of S&P 500 companies have reported earnings so far. Of those, nearly 70% have beaten analyst expectations
The Dow got a boost earlier in the session following a robust earnings report from American Express. The credit card company jumped about 1.9% after beating analyst expectations, because of record consumer spending in areas such as travel and entertainment.
Treasury prices moved sharply higher, lowering yields to 2.76%, from Thursday’s 2.90%. Treasury prices and yields move in opposite directions.
Oil prices lost $1.71 to $94.64 U.S. a barrel.
Gold prices moved up $9.10 to $1,722.50 U.S. an ounce.
