Stocks retreated Friday as a surge in the 10-year Treasury yield prompted broader concerns about the state of the economy.
The Dow Jones Industrials swooned 118.83 points at noon hour Friday at 33,295.34, dragged down by American Express following a mixed earnings report.
The S&P 500 index dropped 30.76 points to 4,247.24.
The NASDAQ index declined 159.08 points, or 1.1%, to 13,027.09.
Regional banks were thumped, with Regions Financial leading the decline after a weak earnings report, falling more than 10%.
Concerns over higher rates weighed on the market during the week. The S&P 500 is down 1.9% on the week, while the Dow has lost 1.1%. The NASDAQ is off 2.7%, putting it on pace for its second straight week of losses.
American Express shares dipped 4%. The company’s earnings per share beat expectations, but revenue was about in line with estimates. Non-interest revenue, meanwhile, missed a StreetAccount consensus forecast.
Solar stocks were also among the biggest decliners. The move came after SolarEdge slashed its third-quarter revenue guidance, sending the stock down 30%
Nvidia, the closely-followed artificial intelligence stock, was on pace for its worst week since September 2022 with a loss of nearly 9%. The stock slid more than 1.5% in Friday’s session.
Tesla was on track to end the week 15% lower, which would be its worst week since December 2022. The electric vehicle maker, which reported earnings on Wednesday, missed Wall Street expectations on both lines for the first time since 2019.
The yield on the benchmark 10-year Treasury crossed 5% for the first time in 16 years on Thursday. The 10-year yield hit 5.001% around 5 p.m. ET, the first time it has traded above that level since July 20, 2007 — when it yielded as high as 5.029%.
Prices for the 10-year Treasury moved forward, lowering yields, for now, to 4.91% from Thursday’s 4.98%. Treasury prices and yields move in opposite directions.
Oil prices gained 68 cents to $90.05 U.S. a barrel.
Gold prices advanced $19.20 to $1,999.70.