Wall Street had a wild start to the week, with stock markets rebounding to end Monday higher after plunging on worries about rising interest rates and tensions in Ukraine.
Media stocks mostly ended up in positive territory, though AMC and Netflix were notable exceptions, declining 7% and 2.6%, respectively. The Dow, Nasdaq and S&P 500 all finished higher after a swing of hundreds of points. In the early going, he damage was pretty severe, with the S&P joining the Nasdaq in territory that qualifies as a correction.
Economists generally define a correction as a 10% decline from the peak, which came last December for the tech-heavy Nasdaq. Even after recovering hundreds of points to record a fractional gain today and close at 13,855.13, the index is still down almost 12% in 2022 to date. The Dow also ended the session up a fraction at 34,364 and the S&P hit the closing bell at 4,222.62 after regaining almost 200 points.
Netflix extended its slump, though today’s downturn was a fraction of Friday’s 22% drop. Analysts and investors hammered the stock Friday on heavy volume a day after the streaming giant issued a weak subscriber outlook.
A handful of factors weighing on the markets included a Federal Reserve meeting Tuesday, the prospect of higher interest rates, glum outlooks by companies reporting earnings, and an ongoing pullback from the tech sector.
Volatility has been a hallmark of the year in the early going. As earnings season starts, a number of other large-cap companies have offered had rather downbeat commentary on the year ahead. This week, Apple, Comcast, AT&T, Verizon, Microsoft and others will weigh in with numbers and sentiment.
The Fed is expected to raise interest rates a few times this year to combat inflation that’s at 40-year highs and could clarify its intentions Tuesday. Rate angst has hit tech and other growth stocks, whose growth has been a major engine for the overall markets.
Media gainers Monday included ViacomCBS, AMC Networks and Fox, all up 4% apiece; and Discovery, which added almost 3%. Disney, which dipped below $130 at one point in the day, rallied to just above the break-even point, finishing at $137.46.
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