Wall Street is ending another losing week with a relatively quiet close as U.S. stocks drift in early trading on Friday. The S&P 500 is 0.1% lower, on track for its third straight losing week, the longest streak since September. The Dow Jones Industrial Average is up 44 points, while the Nasdaq composite has fallen 0.4%. Oil prices are easing after initially jumping due to worries about fighting in the Middle East. Netflix also experienced a decline after announcing it will stop providing quarterly updates on subscriber totals.
The early trading session on Friday saw Wall Street bouncing between losses and gains as tensions in the Middle East weighed on sentiment, causing European and Asian markets to stumble. Futures for the S&P 500 and the Dow Jones Industrial Average rose slightly before the bell, while oil prices surged overnight following reports of an Israeli drone attack in Iran, only to reverse those gains by the morning. S&P downgraded Israel’s long-term credit rating due to the risk of military escalation with Iran, becoming the second major U.S. credit ratings agency to do so.
Netflix experienced a more than 5% decline in off-hours trading after reporting strong financial results and subscriber growth in the last quarter. Despite this, the company surprised investors by announcing it will stop providing quarterly updates on subscriber totals beginning next year. In a shareholder letter, Netflix stated that it believes its financial growth is more significant to monitor than quarter-to-quarter fluctuations in subscribers. Stocks have been struggling as bond market yields rise, with investors losing hope for significant interest rate cuts from the Federal Reserve this year.
In Europe, major indices like Germany’s DAX and London’s FTSE 100 experienced losses, while Japan’s Nikkei 225 fell 2.7% in midday trading. Semiconductor equipment supplier Lasertec and other tech-related shares also dropped in Japan, with the yen slightly firmer against the U.S. dollar. Australia, South Korea, Hong Kong, and Taiwan also saw declines in their respective markets. U.S. benchmark crude oil prices fell to $81.48 per barrel, while Brent crude retreated to $86.51 per barrel in electronic trading on the New York Mercantile Exchange.
On Thursday, the S&P 500 fell 0.2%, marking its fifth straight loss and sitting 4.6% below its record set late last month. The Dow Jones Industrial Average edged up slightly, while the Nasdaq composite slipped. Market participants are closely watching fluctuations in oil prices, interest rates, and geopolitical tensions in the Middle East for potential impacts on global markets. Concerns about inflation and uncertainties surrounding Federal Reserve rate policies continue to influence investor sentiment.
