Synopsis
On Friday, investors remained pessimistic for the second day in a row as they digested remarks from Federal Reserve Chairman Jerome Powell about the possibility of rapidly rising interest rates.
On Friday, investors remained pessimistic for the second day in a row as they digested remarks from Federal Reserve Chairman Jerome Powell about the possibility of rapidly rising interest rates.
The broad indexes returned to their mid-March lows as a result of the action:
- The Dow Jones Industrial Average dropped 981.36 points (or 2.8 percent) to 33,811.40, its lowest finish since March 15. The Dow dropped 1.9 percent this week, and is currently down 7% in 2022. (Dividends are not included in this article’s price movements.)
- The S&P 500 fell 2.8 percent on Friday, closing at its lowest level since March 15. The benchmark index in the United States plummeted 2.8 percent this week, bringing its year-to-date loss to 10.4 percent.
- On Friday, the Nasdaq Composite Index dropped 2.5 percent to its lowest level since March 14. For the week, the Nasdaq fell 3.8 percent. This year, it has lost 17.9% of its value.
The S&P 500 is dismantled.
Netflix Inc., the worst-performing company in the S&P 500 this week, fell 35% on Thursday after announcing that it will lose $2 million customers in the second quarter. The week finished with a 37% drop in Netflix’s stock price.
The S&P 500 was down for the week in all but two of its 11 sectors, led by communications services, which includes Netflix:
| S&P 500 sector | Price change – April 15 through April 22 | Price change – April 22 | Price change – 2022 | Price change – 2021 |
| Communication Services | -7.7% | -3.3% | -22.8% | 20.5% |
| Energy | -4.6% | -2.4% | 37.2% | 47.7% |
| Materials | -3.7% | -3.7% | -5.5% | 25.0% |
| Health Care | -3.6% | -3.6% | -5.3% | 24.2% |
| Information Technology | -2.5% | -2.8% | -17.9% | 33.4% |
| Utilities | -2.4% | -1.7% | 3.8% | 14.0% |
| Financials | -2.0% | -3.0% | -7.5% | 32.5% |
| Consumer Discretionary | -1.8% | -2.4% | -14.3% | 23.7% |
| Industrials | -1.6% | -2.5% | -7.0% | 19.4% |
| Consumer Staples | 0.4% | -1.6% | 2.9% | 15.6% |
| Real Estate | 1.2% | -1.8% | -4.9% | 42.5% |
| S&P 500 | -2.8% | -2.8% | -10.4% | 26.9% |
In 2022, the communications services industry is likewise the worst-performing sector.
The S&P 500’s lowest 15 performers this week are as follows:
| Company | Ticker | Sector | Price change – April 15 through April 22 | Price change – April 22 | Price change – 2022 | Price change – 2021 |
| Netflix Inc. | Communication Services | -36.8% | -1.2% | -64.2% | 11.4% | |
| Enphase Energy Inc. | Information Technology | -19.4% | -1.9% | -16.0% | 4.3% | |
| HCA Healthcare Inc | Health Care | -19.3% | -21.8% | -18.0% | 56.2% | |
| Warner Bros. Discovery Inc. Series A | Communication Services | -17.3% | -4.1% | -12.6% | -21.8% | |
| Dentsply Sirona Inc. | Health Care | -16.5% | -2.7% | -26.6% | 6.6% | |
| SolarEdge Technologies Inc. | Information Technology | -16.3% | -1.0% | -10.3% | -12.1% | |
| Match Group Inc. | Communication Services | -16.1% | -0.5% | -41.6% | -12.5% | |
| PayPal Holdings Inc. | Information Technology | -15.9% | -3.8% | -54.4% | -19.5% | |
| Moderna Inc. | Health Care | -15.2% | -2.9% | -44.7% | 143.1% | |
| Charles Schwab Corp | Financials | -15.0% | -4.0% | -16.4% | 58.6% | |
| Etsy Inc. | Consumer Discretionary | -15.0% | -3.3% | -55.1% | 23.1% | |
| Freeport-McMoRan Inc. | Materials | -14.8% | -6.8% | 0.4% | 60.4% | |
| Paramount Global Class B | Communication Services | -14.7% | -3.9% | 2.8% | -19.0% | |
| Baker Hughes Company Class A | Energy | -13.6% | -2.2% | 33.8% | 15.4% | |
| Meta Platforms Inc. Class A | Communication Services | -12.4% | -2.1% | -45.3% | 23.1% |
For additional information on each company, including extensive coverage of news that may have contributed to their drops this week, click the tickers.
You should also read Tomi Kilgore’s comprehensive guide to the plethora of information available on the MarketWatch quotation page, which is available for free.
The newly established Warner Brothers Discovery Inc., which is shutting down the CNN+ service less than a month after it started, and Paramount Global, which streams through Paramount+, are two additional companies with streaming services that have been hit hard this week.
However, several other firms that include numbers of users or participants in their quarterly financial news announcements, such as Match Group Inc., PayPal Holdings Inc., Etsy Inc., and Facebook’s holding company Meta Platforms Inc., have pulled back dramatically.
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