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US stocks traded sharply lower on Friday after the US inflation gauge for the month of March grew at its fastest pace since January 1982.
The Dow Jones Industrial Average fell about 938 points, or 2.8%, ending the session near 32,977.
The S&P 500 dropped 132 points, or 3.1%, to 4,155. The Nasdaq Composite hit a new intraday low for the year, dropping 4.3%, weighed down by Amazon’s post-earnings plunge.
Friday marked the last day of trading for the month of April. This was the worst month for the Dow and S&P 500 since March 2020, Nasdaq’s 13.3% monthly fall was its biggest drop since October 2008.
Amazon’s disappointing quarterly results and its first loss in seven years, contributed to the carnage on Friday.
Investors are also wary of the Federal Reserve’s announcement next week. The central bank is expected to increase the interest rates by half-percentage point to tighten financial conditions and counter inflation that's been running at 40-year highs.
The Fed could also begin reducing its near $9 trillion balance sheet by reversing its large-scale asset purchases to help stabilize markets during the pandemic.
Market movers
Amazon (NASDAQ: AMZN) fell about 14%, its biggest drop since 2006, after the company reported a loss and a weak revenue guidance for the second quarter.
Apple’s (NASDAQ: AAPL) shares fell more than 3% after management said supply chain constraints could hinder fiscal third-quarter revenue.
Shares of Exxon Mobil Corp. (NYSE: XOM) dropped by 2.4% after the company missed profit estimates for the first quarter after booking a $3.4 billion charge relating to its planned exit from Russia’s Sakhalin-1 project.
The yield on the 10-year Treasury note rose 2.3 basis points Friday to 2.885%, following the latest inflation data.
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