Wall Street bid farewell to a six-week winning streak at Friday’s market close as Treasury yields rose and investors grappled with high valuations amid mixed earnings. One of the biggest losers on Friday was Capri Holdings, which lost nearly half its stock value after a federal judge blocked the acquisition by Tapestry.
S&P 500: 5,808.12 ⬇️ down 0.03% Nasdaq Composite: 18,518.61 ⬆️ up 0.56% Dow Jones Industrial Average: 42,114.40 ⬇️ down 0.61% STOXX Europe 600: 518.81 ⬇️ down 0.033% CSI 300: 3,956.42 ⬆️ 0.70% increase Nikkei average: 37,913.92 ⬇️ 0.60% down Bitcoin: $66,748.76 ⬇️ 2.08% down
US: Nasdaq rises on strong tech stocks, Dow and S&P fall on mixed outlook
The S&P 500 fell 0.03%, and the Dow Jones Industrial Average also stalled, down 0.61%. Only the Nasdaq Composite Index rose 0.56% due to the strong performance of high-tech stocks. Capital One soared more than 6% after beating third-quarter profit estimates, and Deckers Outdoor soared more than 10% after raising its full-year forecast. But Capri Holdings, the luxury brand that owns Jimmy Choo, Versace and Michael Kors, fell more than 48%, adding new uncertainty to the company’s outlook. Rising U.S. Treasury yields also weighed on sentiment, with the 10-year Treasury yield rising to 4.24%, leading to a tough sell on stocks.
This week, blue chip stocks also saw their six-week winning streak come to an end, with the S&P 500 falling 1% and the Dow Jones Industrial Average dropping 2.7%. The Nasdaq rose 0.2% for the week.
Europe: Poor business results weigh on the market, causing stock prices to fall
European stock markets closed lower on Friday after several companies missed profit expectations. The Stoxx Europe 600 index fell 0.033% as German carmaker Mercedes-Benz fell nearly 4% after disappointing quarterly results. France’s Remy Cointreau also lowered its guidance due to weak demand in China, and its shares fell about 1%. Despite SAP’s strong performance earlier this week, sentiment in Europe remained cautious, with the UK’s FTSE 100 index down 0.25%.
China: Rise as focus shifts to US election
Chinese markets rose slightly, with the CSI300 index up 0.70%, as investors watched the intense US election race and digested limited domestic news. The People’s Bank of China kept medium-term lending rates unchanged at 2% following last month’s sharp rate cut, which supported market sentiment. Hong Kong’s Hang Seng also edged up 0.49% as investors maintained expectations for stable policy conditions.
Japan: Stocks fall ahead of weekend elections
Japan’s Nikkei stock average fell 0.60% as investors remained cautious ahead of Sunday’s election. The Liberal Democratic Party’s majority status remains uncertain, casting doubt on its future economic policy. Core inflation slowed to 1.8%, the lowest in five months, raising hopes that Japan’s central bank will avoid raising interest rates. With most stocks in the red, Mazda Motors was a rare bright spot, rising 1.56%.
