Wall Street ended lower on Friday, weighed down by declines in Amazon, Apple, and other heavyweight technology stocks, while investors worried about a rise in coronavirus cases tied to the new but highly potent Delta variant, as the country reported more than 33,000 new cases on Thursday, bringing the seven-day average up to 23,306, a 70 percent rise on the week before.
On Thursday, Los Angeles County said it would reimpose its mask mandate starting this weekend.
On Friday, public health officials said U.S. coronavirus cases were up 70% over the previous week, with deaths up 26%.
U.S. stocks fell on the week for the first time in a month as accelerating inflation raises concern about the sustainability of the economic expansion. Treasury yields fell for three consecutive weeks.
Amazon and Apple fell more than 1%. Nvidia lost 4.2%, and the three companies contributed more than any others to the S&P 500 and Nasdaq’s declines. Cruise lines Carnival Corp and Norwegian Cruise Line both fell about 5%
The second-quarter earnings season picks up next week, with reports from companies including Netflix, Johnson & Johnson, Verizon Communications, AT&T, and Intel. Investor sentiment has been cautious as they have balanced worries about a recent inflation spike with reassurances from Fed Chair Jerome Powell that the surge in prices is temporary.
With the S&P 500 up about 15% so far this year, investors will look for strong company forecasts to justify sky-high valuations.
The S&P 500 energy sector index sank nearly 3% and ended the week 8% lower, with investors worried about expectations for more supply and a rise in coronavirus cases that raised demand concerns.
The S&P 500 fell about 1% for the week, the Dow lost 0.5% and the Nasdaq shed 1.9%, their first weekly declines in four weeks.
Moderna Inc jumped 10.3% to a record high after S&P Dow Jones Indices said the drugmaker will join the S&P 500 index as of the start of trading on July 21, replacing Alexion Pharmaceuticals.
Cintas Corp surged 4.6% after brokerages raised price targets on the business service provider’s stock following its fourth-quarter results.
Didi Global Inc fell 3.2% after China sent state officials from at least seven departments to the ride-hailing giant for a cybersecurity review.
Oil posted its biggest weekly loss since mid-March as markets face the prospect of extra supplies from the OPEC+ coalition, as the United Arab Emirates and Saudi Arabia repair a rift that has stymied the group’s decision-making process. A stronger dollar has also dimmed the appeal of commodities priced in the U.S. currency this week.
Meanwhile, President Biden has strongly criticized social media platforms such as Facebook for allowing misinformation about coronavirus vaccines to be posted on its platform.
“They’re killing people. Look, the only pandemic we have is among the unvaccinated. And they’re killing people,” Biden told reporters when asked about misinformation and what his message was to social media platforms such as Facebook
Facebook did not immediately respond to a request for comment.
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