Stocks fell sharply on Friday afternoon, with the Dow Jones Industrial Average down nearly 1,000 points, marking its worst day since October 2020.
The Dow Jones fell 981 points, or 2.8%, on Friday afternoon, putting it down 1.9% for the week, its fourth straight weekly decline and ninth losing week in the past 11.
According to a CNN Business report, all 30 Dow stocks ended the day lower, led by Verizon, which fell more than 5.5%, and Caterpillar, which plunged 6.5%. Goldman Sachs, Home Depot and Visa were also significant contributors to the decline.
Gap Inc. shares also fell 18% on Friday as the market reacted on Thursday to the firing of Old Navy CEO Nancy Green in a downgrade to Q1 2022 guidance. …year-over-year declines in the first quarter of fiscal 2022. Its earlier guidance called for year-over-year declines in the mid-to-high single digits.
“As we seek to capture the potential of Old Navy, particularly amid the macro-economic dynamics facing our industry, we believe the time is right to bring in a new leader with operational rigor. and creative vision to execute the brand’s unique value proposition,” Gap Inc. CEO Sonia Syngal said Thursday.
Additionally, the S&P 500 was down 2.8% on Friday, its worst day since March, and the Nasdaq Composite ended the day down 2.6%.
The losses follow remarks by Federal Reserve Chairman Jerome Powell during a panel hosted by the International Monetary Fund on Thursday, where he signaled that a 50 basis point rate hike was “on the table.” for May, when the US central bank holds its next policymaking meeting. The Fed Chairman reiterated that this hike is “absolutely essential” to fight inflation.
Soaring inflation has been a concern for months now, but this news follows last week’s Bureau of Labor Statistics report that showed consumer prices rose 8.5% in March from one year ago. The figure was up from 7.9% growth in February and represented the highest rate of inflation since the 12 months to December 1981.
As for footwear, prices rose 6.6% in March, year-over-year, according to data from the Footwear Distributors and Retailers of America (FDRA). This is the third fastest year-over-year increase in about 33 years, behind February’s 7% increase and May’s 7.1% increase.
This price hike was finally addressed by the Federal Reserve in March when it raised its key rate by 25 basis points, the first hike in more than three years.