WASHINGTON (dpa-AFX) - Stocks have moved sharply lower during trading on Friday, extending the pullback seen over the course of the previous session. The major averages have all moved to the downside, with the Nasdaq showing another particularly steep drop.
Currently, the major averages are off their lows of the session but still in the red. The Nasdaq is down 550.37 points or 2.1 percent at 25,634.35, the S&P 500 is down 98.79 points or 1.3 percent at 7,621.60 and the Dow is down 274.04 points or 0.5 percent at 52,068.52.
The Nasdaq plunged to its lowest intraday level in almost three months early in the session amid continued weakness among technology stocks.
Intel (INTC) has helped lead the tech sector lower, with the semiconductor giant plummeting by 27.3 percent to a six-month intraday low.
The nosedive by Intel comes after the company reported better than expected third quarter earnings but provided disappointing fourth quarter guidance.
Shares of Amazon (AMZN) have also slumped by 1.9 percent after the online retail giant reported third quarter earnings and revenues that missed analyst estimates as well as negative free cash flow.
'The message from investors is becoming clearer: strong AI demand is no longer enough on its own,' said Daniela Hathorn, Senior Market Analyst at Capital.com. 'Companies need to demonstrate that substantial capital expenditure is translating into sustainable revenue growth, margins and free cash flow.'
She added, 'This could remain a significant headwind for the Nasdaq, particularly given the concentration of market gains in a handful of technology companies.'
Negative sentiment has also been generated in reaction to a significant rebound by the price of crude oil, with U.S. crude oil futures jumping by more than 2 percent.
Supply concerns due to the conflict in the Middle East are driving crude oil prices higher after a tanker transiting the Strait of Hormuz was attacked with two explosive devices attached to its hull by a small boat. It was not immediately clear who was behind the attack.
Additionally, according to reports by the Wall Stret Journal and Axios, a senior commander has briefed President Donald Trump on potential military options for a possible resumption of major combat operations against Iran.
On the other hand, energy stocks are benefiting from the jump in crude oil prices, with Chevron (CVX) and Exxon Mobil (XOM) posting strong gains after reporting skyrocketing third quarter profits.
Sector News
Computer hardware stocks are seeing substantial weakness amid the broader tech sell-off, dragging the NYSE Arca Computer Hardware Index down by 6.6 percent to its lowest intraday level in well over two months.
Semiconductor and networking stocks have also shown significant moves to the downside, with the Philadelphia Semiconductor Index and the NYSE Arca Networking Index plunging by 6.1 percent and 4.6 percent, respectively.
Gold stocks have also moved sharply lower along with the price of the precious metal, resulting in a 5.2 percent nosedive by the NYSE Arca Gold Bugs Index.
Airline, brokerage and software stocks are also seeing considerable weakness, while pharmaceutical and energy stocks are bucking the downtrend.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Friday. Japan's Nikkei 225 Index tumbled by 2.1 percent and China's Shanghai Composite Index slumped by 1.4 percent, while Hong Kong's Hang Seng Index jumped by 1.5 percent.
The major European markets have also turned mixed on the day. While the German DAX Index is down by 0.8 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are both up by 0.1 percent.
In the bond market, treasuries are seeing further upside following yesterday's notable advance. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 6.6 basis points at 4.923 percent.
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