The S&P 500 entered correction territory on Friday.
All three major averages registered steep weekly losses. The Dow and S&P 500 are down 2.1% and 2.5%, respectively, for the week. The Nasdaq has fallen 2.6% in that time, dragged down by sharp weekly declines in Meta Platforms and Google-parent company Alphabet.
“We still have a shaky economic outlook. So while the third quarter GDP print was extraordinarily high, I think everybody still expects that the US economy is going to slow down. The only question there is how much is it going to slow down and how fast,” said Dave Sekera, chief U.S. market strategist at Morningstar.
The decline in key tech stocks pushed the Nasdaq into correction territory after falling more than 10% from its closing high in July on Wednesday. This week also saw the index record its worst trading day since February.
Disappointing earnings have pressured the market this week. Ford dropped 14% week to date after the company missed third-quarter expectations and pulled its guidance for the year, citing the UAW strike. Chevron shares were down 13% on the week, after the energy giant reported earnings.
Traders also weighed new inflation data after the core personal consumption expenditures reading for September was released ahead of the Federal Open Market Committee meeting next week. Core PCE increased 0.3% in last month and 3.7% year over year, matching estimates from economists polled by Dow Jones. Consumer spending increased 0.7%, however, surpassing estimates of 0.5%. PCE is the Federal Reserve’s preferred inflation gauge.