Nasdaq drops slightly, Lyft sinks in gloomy outlook According to Reuters

© Reuters. FILE PHOTO: Traders work on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 27, 2023. REUTERS/Andrew Kelly

By Shreyashi Sanyal and Johann M Cherian

(Reuters) – The Nasdaq index fell on Friday as growth stocks came under pressure after Treasury yields extended gains, while corporate shares called for a car. Lyft plummeted after earnings forecasts fell.

The Nasdaq saw its first weekly loss of the year, while the Dow Jones and Dow Jones Industrial Average were set to clock lower in a week dominated by hawkish commentary from Federal Reserve officials. U.S. states and reported earnings from more than half of the S&P 500 components.

Yields on the benchmark 10-year Treasury note rose to their highest in more than a month after a 30-year bond auction showed weak demand. [US/]

Apple Inc (NASDAQ:), Inc (NASDAQ:), Microsoft Corporation (NASDAQ:) and Tesla (NASDAQ:) Inc fell from 0.6% to 4.4%. Rising Treasury yields put the valuations of growth stocks under strain.

“If you get 4% in Treasury risk-free, why would you risk any money in the stock market?” Adam Sarhan, managing director of 50 Park Investments said. “It definitely affects NASDAQ 100 class stocks because they are very sensitive to interest rates.”

At 10:09 a.m. ET, the index was up 0.18 points, or 0.00%, at 33,700.06, the S&P 500 was down 9.72 points, or 0.24%, at 4,071 .78 and down 92.48 points, or 0.78%, at 11,697.10.

Eight of the 11 major S&P 500 sectors fell, with the consumer non-essentials sector down 1.3%. The energy sector rose 2.2% as oil prices climbed due to Russia’s plan to cut crude supplies.

Lyft Inc (NASDAQ:) plummeted 35.3% as its current-quarter profit forecast was much lower than estimates and it also lowered prices, raising concerns that it would fall behind larger rival Lyft Inc (NASDAQ:) Uber Technologies (NYSE:) Inc. Shares of Uber fell 3.6%.

Manufacturer Sharpie Inc fell 4.8% on lower-than-expected annual forecasts and announced the retirement of Chief Executive Officer Ravi Saligram.

More than half of the companies listed on the S&P 500 reported earnings, with 69% beating earnings estimates for the quarter according to Refinitiv.

Intel Corporation (NASDAQ:) is considering expanding a $1.5 billion chip testing and packaging plant in Vietnam, two sources familiar with the matter told Reuters. Shares of the chip giant fell 0.7%.

Survey of US consumer sentiment improved further in February from the previous month, but households expect higher inflation to continue over the next 12 months, preliminary February results of University of Michigan shows.

Losers outnumbered gainers by 1.61 to 1 on the NYSE and 2.08 to 1 on Nasdaq.

The S&P index recorded a new 52-week high and no new low, while the Nasdaq recorded 13 new highs and 39 new lows.

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