Stock Market Today: Netflix Helps Drags Down Nasdaq; Indexes Tumbles On Retail Report
Netflix stock plummeted Thursday along with the broader markets after a report showed retail sales deteriorating more quickly than forecast, raising recession concerns.
The Dow Jones Industrial Average fell 763.54 points, or 2.25%, to close at 33,202.81. The S&P 500 declined 99.22 points, or 2.48%, to close at 3,896.10. The Nasdaq Composite Index dropped 360.36 points, or 3.23%, to close at 10,810.53.
The Census Bureau reported that retail and food sales in November fell more than economists projected -- down 0.6% to $689.4 billion after rising 1.3% in October. The report stoked fears of a recession a day after the Federal Reserve raised interest rates 0.5% as it continues to battle inflation.
Though the Fed's rate was less than the three consecutive 0.75% increases, there are still concerns that the central bank's aggressive action to tamp down inflation could push the economy into recession.
Fed Chairman Jerome Powell signaled more rate hikes are likely in 2023.
Netflix (NFLX) shares plunged 8.63%, or $27.42 a share, to close at $290.41. Digiday had reported that the streaming company is offering refunds to advertisers after failing to meet viewership metrics.
Some stocks that fell Wednesday included Alphabet (GOOG), which closed at $91.20, down $4.11, or 4.31%. Apple's (AAPL) price of shares fell $6.71, or 4.69%, to close at $136.50.
"The equity market's reaction is now factoring in a recession, and rejecting the possibility of the 'soft/softish' landing mentioned recently by Powell at the [Brookings Institution]," Quincy Krosby, chief global strategist at LPL Financial, wrote to clients on Thursday. "The tug-of-war between the Fed and the markets is squarely on the market's side: the slowdown is not 'transitory,' and the Fed will be forced to act before 2024."
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