A tech stock sell-off dragged Wall Street lower Friday. Stock market darlings like Nvidia and Tesla led the downturn. The choppy session capped a volatile week weighed down by fears that the Omicron variant would slam the brakes on the economic recovery.
A mixed jobs report from the Labor Department didn’t help, either. Hiring slowed in November, but wages rose and the unemployment rate dropped sharply.
Fiduciary Trust International’s Carin Pai said investors deemed that report strong enough to keep the Federal Reserve on its path to accelerate its tapering of bond purchases.
“We did get a message from the Fed that they are going to likely or potentially consider moving more aggressively. I think in response to some of the inflation data, right I mean. We're continuing to see higher inflation.”
The Dow fell two-tenth percent. The S&P 500 lost eight-tenths of a percent. And the Nasdaq dropped nearly 2%. On the week, all three indexes lost ground.
The Nasdaq’s biggest decliner: DocuSign, plunging 42%. The electronic signature software company that saw heavy demand amid the health crisis issued a weak revenue forecast, warning that demand for its software had slowed faster than it expected.
Nvidia declined more than 4%. The Federal Trade Commission sued to block the gaming chip maker’s $80 billion planned acquisition of British chip technology provider Arm.
Shares of Didi Global plummeted. The Chinese ride-hailing firm surprised the markets with a U-turn just months after its public debut. Didi said it’ll withdraw from the New York Stock Exchange and re-list in Hong Kong.