Key market indexes capped a volatile week with big losses as President Donald Trump continued to make waves with his tweets. The Dow Jones Industrial Average dived as much as 334 points in the stock market today before paring its loss to 98 points, or 0.4%, by day's end.
XThe Nasdaq sank 1.3% and the S&P 500 lost 0.7%. Small caps tracked by the Russell 2000 tumbled 1.1%. Preliminary data showed lighter volume on the NYSE and Nasdaq vs. Thursday, lessening the sting somewhat.
Stocks fell hard at the open to extend Thursday's losses, which were sparked by Trump's tweet about new China tariffs. Friday afternoon, the market didn't react at first to news the U.S. reached a deal to expand U.S. beef exports to Europe. But the major indexes trimmed their losses in the last hour of trade.
The Dow Jones index slumped nearly 1.3% during the session and breached its 50-day moving average. But it came back enough to close above the support line.
Big-cap tech stocks took a drubbing as Cisco Systems (CSCO), Apple (AAPL) and IBM (IBM) shed more than 2% apiece. Intel (INTC) lost 1.7%, while Microsoft (MSFT) gave up 0.8%.
Apple, which had briefly cleared a 215.41 proper buy point Wednesday, fell 2.1%. It's now 12% off a Wednesday session peak.
The blue chips weighed on the Nasdaq, which tumbled as much as 1.9% during the session. The tech-heavy index briefly undercut its 50-day line but closed just above it, as did the S&P 500.
Dow Jones Slips Below 10-Week
For the week, the Nasdaq lost 4%, the S&P 500 dropped 3% and the Dow Jones index fell nearly 3%. All three indexes finished around their 10-week moving average lines.
Telecom services, software and other computer-related stocks led the downside among IBD's 197 industry groups. Food, tobacco and retail were among the few groups to advance.
Point-of-sale software provider Square (SQ) plunged 14% as it gapped down below its 50-day and 200-day lines. Late Thursday, the company reported adjusted earnings that topped views, but its guidance and payment volume disappointed.
Etsy (ETSY) sank 12%, slicing its 50-day line in triple normal trade after its late-Thursday earnings report. The arts and crafts retailer's Q2 profit beat views but revenue missed. The midpoint of Etsy's full-year sales guidance, however, is above analyst forecasts.
Arista Networks (ANET) crashed 10%, gapping down below its 50-day and 200-day lines in heavy volume. Shares had risen in extended trading Thursday, after the networking gear maker's earnings topped views. Sales also edged past estimates, but growth slowed to 17% from the same year-ago quarter. That marked its smallest increase in years.
Less than a fifth of the IBD 50 stocks avoided the downdraft. Brazil-based payment companies StoneCo (STNE) and PagSeguro Digital (PAGS) added 2.2% and 1.4%, respectively. Essential Properties Realty Trust (EPRT) advanced 1.9% as it nears a 21.93 buy point of a flat base.
The Innovator IBD 50 ETF (FFTY) fell 1.7% to test its 50-day moving average.
Biggest losers among sector ETFs included VanEck Vectors Oil Services (OIH), down 4.2%, SPDR S&P Telecom (XTL), off 3.4%, and Technology Select Sector SPDR (XLK), which fell 1.7%.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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