Stocks got sucker punched by afternoon trading Friday, Feb. 2. The Dow closed lower 2.54% or 665 points, the S&P 500 finished down 2.05% or 58 points, and the Nasdaq gave back 1.82% or 134 points. Take a look back at this week in review with the top market-moving stories.
Down Goes the Dow
January has come and gone, with the stock market snagging its best monthly performance since March 2016. Most of January came up roses, but as Wall Street turned the corner on February stocks spiraled out of control. On Tuesday, Jan. 30, the Dow shed 362 points or 1.37% for its worst intraday performance since May—that is until Friday came around. The Dow plunged 665 points in late-afternoon trading to snag its biggest percentage decline since Brexit in June 2016 and its sixth-largest one-point drop in history. This week was the worst in the stock market in two years.
Bond Yields Surge
The driving force behind those epic stock market declines? The U.S. 10-year Treasury yield jumped to 2.84% Friday, tallying a four-year high on a strong jobs report. Bond yields have spiked this week as investors digest signals of faster inflation in some of the world's largest economies and the impact that could have on growth and interest rates. The Fed has signaled three rate hikes this year and the European Central Bank is expected to ease the pace of its quantitative easing program later this year. Strong employment stats released Friday further suggested the Fed under new chair Jerome Powell could increase rates soon.
Bitcoin's Big Bad Crash
After soaring as high as $20,000 at the end of 2017, bitcoin took a nosedive this week to hit as low as $8,551 Friday, according to data from Coinmarketcap. Bitcoin prices pushed a small bit higher Wednesday, but have spent a majority of the week in the red. On Monday, bitcoin had a market cap of about $197.9 billion. By Friday afternoon, bitcoin had shed more than 25% of that market value. From an all-time high of $20,089 on Dec. 17 to this week's low, bitcoin is down more than 56%. January was the worst 30-day decline in three years.
Tech Earnings Wrap-Up
It was a busy week for Wall Street as Silicon Valley came into focus.
Facebook Inc. (FB) scored 47% year over year revenue growth and beat Wall Street estimates despite reporting that Facebook users are spending about 50 million fewer hours per day on the site globally.
Overall tech earnings didn't offer the market the boost it was looking for, contributing to Friday's major losses. The Technology Select Sector SPDR Fund (XLK) gave back 2.96% by the closing bell Friday.
Trump's First SOTU
President Donald Trump delivered his first State of the Union address Tuesday evening, touching on everything from immigration to infrastructure, foreign policy to trade deals. "No people on earth are so fearless or daring or determined as Americans. The state of our union is strong because our people are strong," Trump said. While the president took on numerous weighty bipartisan issues and delicate policymaking tasks, he spent a great deal of the nearly hour-and-a-half speech recounting stock market records and employment gains that have taken place under his administration. Here are some top takeaways.
TheStreet's newsroom discusses the market plunge and what is on tap in the coming week.
Inside Friday's Jaw-Dropping Market Selloff
- 3 Reasons Why the Trump Trade Has Officially Ended
- Bitcoin Today: Prices Round Out Week With Dip Below $8,000
- Even Gold Prices Get Pounded During Shock Stock Market Pullback
- 9 Tech Stocks That Got Hit the Hardest on Friday's Selloff
- In Market Selloffs, Remember the Difference Between 'Cheap' and 'Lower'
- Remember Even Great Stocks Get Hammered in a Market Rout
- Google Sells Off Following Mixed Earnings: 3 Key Takeaways