The stock has risen but is still heading for the longest weekly losing streak since 2001

U.S. stocks tumbled on Friday as major indicators headed for steep weekly losses as concerns over the resilience of corporate profits in the face of inflation this week.

The S&P 500 traded lower after China’s central bank unexpectedly lowered a benchmark interest rate, giving some relief to borrowers who are still embroiled in a massive COVID-19 outbreak in the country.

The Dow fell more than 250 points, or 0.8%, shortly before 11:30 am ET, and the Nasdaq fell more than 1%. Treasury yields have plummeted, benchmark 10-year note yields have sunk just over 2.8% and U.S. crude oil prices have risen more than 2 112 per barrel.

Friday’s losses for major US stock indices extended a slide seen earlier this week. As of Thursday’s close, the S&P 500 was on track for a weekly loss of 5.4% – the largest since January. The index also fell 18.7% from its recent record since January 3, bringing it within a significant distance of a bear market, or falling at least 20% from a recent all-time high. And the S&P 500 was on track to post its seventh consecutive weekly loss, or its longest rate trend since 2001. The Dow and Nasdaq are leading 5% and 6.2% weekly losses, respectively.

The latest push for volatility came in the wake of weak-expected earnings results and guidance from some major U.S. retailers, which confirms fears that companies are finding it more difficult to pass on rising costs to consumers. Late Thursday, Ross Stores (ROST) became the latest major retailer to reduce its full-year guidance, joining Walmart (WMT) and Target (TGT) to influence inflation and supply chain disruption gains. Ross shares fell 25% shortly after the market opened for the biggest slide in the stock since 1986, and Target and Walmart each advanced about 30% and 20% weekly losses, respectively.

“Unfortunately there is no safe haven. When we look at consumer discretion and the news coming out of the staples … that shows the struggles of companies regardless of their size,” Eva Ados, chief operating officer of ER Shares, told Yahoo Finance Live. “And ironically, these are sectors, major and consumer considerations, which are seen as safe havens in a bad economic market.”

The visible consequences of rising, rising prices have justified the Federal Reserve’s efforts to reduce inflation, which has been at an all-time high since the early 1980s, and to prioritize and tighten monetary policy at the expense of some growth in the wider economy. At the same time, though, other strategists have suggested some of the reasons why large companies are missing out on earnings this week – such as hoarding more inventory than they can sell – could ultimately have a deflationary effect below the line, even in the absence of a more aggressive policy response.

“We’ve seen retailers desperately trying to meet consumer demand by ordering more products. It took a long time to get through the supply chain but in the end it hit store shelves. And now they’re finding they have a little too much,” said Christian Ledoux. Captrust Director of Investment told Yahoo Finance Live

“So we are seeing an inflationary effect on some CPIs [Consumer Price Index] The material is coming in the coming months, “he added.” And if that really happens, the Fed may feel much more comfortable moving a little slower or even stopping at lower interest rates in the future. “

11:18 am ET: The stock goes down, Dow goes down 250+ points

Until 11:18 am ET, the main moves in the market were:

  • S&P 500 (GSPC): -37.76 (-0.97%) to 3,863.03

  • Dow (^ DJI): -279.06 (-0.89%) to 30,974.07

  • Nasdaq (IXIC): -135.91 (-1.19%) to 11,252.59

  • Crude (CL = F): + $ 0.44 (+ 0.39%) to 112.65 barrel

  • Gold (GC = F): + $ 1.30 (+ 0.07%) to 1,842.50 per ounce

  • 10 year treasury (TNX): -3.4 bps Yield 2.8210%

9:47 am ET: Foot Locker shares jump after forecast at the top of the company’s full-year results range, retail depression trend

Foot Locker (FL) traded up more than 6% on Friday morning when the retailer said it expected its full-year profit and that sales results would reach the upper end of its previously issued range. Amidst the confusion of disappointing retail results given earlier this week, the guidance came as unexpectedly encouraging.

For the full year, Foot Locker said it was coming to the “upper end” of its previous range of আয় 4.25 to 60 4.60 per share. Although it still sees sales decline this year, it expects it to come to the upper end of the previous range below 4% to 6%.

Foot Locker CEO Richard Johnson said in a press statement, “We’re off to a strong start in 2022, reporting a tough quarterly comparison between last year’s financial stimulus and the historically-low promotion comparison.” “We continue to make progress in expanding and enriching our portfolio, as we continue to meet the needs of our customers. These efforts helped drive our strong results in the first quarter, and we believe will allow us to participate more fully in our strong growth.” Going. “

First-quarter comparable same-store sales were down 1.9%, but it came after comparative sales rose more than 80% in the same quarter last year. According to Bloomberg, the 3.5% decline was lower than Wall Street had expected. The adjusted earnings per share of 60 1.60 for the first quarter exceeded the estimate by 7 cents.

9:33 am ET: Stocks open more, Nasdaq gained more than 1%

Until 9:33 am ET, the main moves in the market were:

  • S&P 500 (GSPC): +35.28 (+ 0.90%) to 3,936.07

  • Dow (^ DJI): +205.35 (+ 0.66%) to 31,458.48

  • Nasdaq (IXIC): +119.72 (+ 1.05%) to 11,508.21

  • Crude (CL = F): + $ 0.02 (+ 0.02%) to 112.23 per barrel

  • Gold (GC = F): – $ 1.00 (-0.05%) to $ 1,840.20 per ounce

  • 10 year treasury (TNX): -0.9 bps Yield 2.846%

7:15 am ET: Stock futures move higher

Here is where the markets traded on Friday morning:

  • S&P 500 Futures (EN = F): +40.75 points (+ 1.05%) to 3,938.50

  • Dow Future (YM = F): +267.00 points (+ 0.86%) to 31,469.00

  • Nasdaq Future (NQ = F): +163.50 points (+ 1.38%) to 12,041.75

  • Crude (CL = F): + $ 0.24 (+ 0.21%) to 112.45 barrel

  • Gold (GC = F): + $ 2.20 (+ 0.12%) to 1,843.40 per ounce

  • 10 year treasury (TNX): +0.2 bps Yield 2.857%

New York, New York - May 06: Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on May 06, 2022 in New York City.  The Dow Jones Industrial Average fell more than 200 points in early morning trading after a day of falling more than 1,000 points in fear of inflation.  (Photo by Spencer Platt / Getty Images)

New York, New York – May 06: Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on May 06, 2022 in New York City. The Dow Jones Industrial Average fell more than 200 points in early morning trading after a day of falling more than 1,000 points in fear of inflation. (Photo by Spencer Platt / Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow him on Twitter.

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