STORY: Wall Street snapped a four-week winning streak Friday, ending the week lower with a broad selloff led by mega-cap tech stocks.
The Dow finished almost a percent lower. The S&P 500 fell about a percent and a quarter, while the Nasdaq ended down 2%.
Investors have been weighing how aggressive the Federal Reserve may need to be as it raises interest rates to battle inflation.
Zach Stein is chief investment officer and co-founder of Carbon Collective.
“I think what we're seeing is simply a reaction to yesterday. This speaks to the volatility of what we're seeing right now, where we're firmly kind of in that neutral place between bearish and bullish, and we're seeing the two camps pull at each other of what is this long-term trajectory. As we see more information come out, especially around what, how the Fed is going to react, given that we're seeing inflation start to come down or slowdown in some key categories, I think that we might see one camp start to win out more and some more at more consistent trends rather than the kind of back and forth seesaw we've been seeing on a day to day basis.”
Shares of Apple, Amazon and Microsoft all fell, putting pressure on the S&P 500.
Meme stock Bed Bath & Beyond plunged more than 40% as billionaire investor Ryan Cohen exited the struggling retailer by selling his entire stake.
On the positive side, shares of General Motors gained 2.5% after the automaker said it would reinstate quarterly dividend payouts after more than two years without them.
And shares of Foot Locker jumped 20% after the retailer said it had appointed former Ulta Beauty chief Mary Dillon as its new CEO, and also reported second-quarter profit above estimates.