US stocks fall after three up sessions

Traders work on the floor of the New York Stock Exchange, on July 21, 2022. PHOTO: REUTERS

NEW YORK (AFP) - The tech-rich Nasdaq took a hit on Friday (July 22) following disappointing Snap results, as US stocks finished a strong week on a downcast note.

All three major indices retreated as Snapchat parent Snap reported that quarterly losses nearly tripled to US$422 million (S$580 million) in results that triggered worries about other tech companies that rely on digital advertising.

Despite Friday's uninspiring session, stocks finished solidly higher on the week as analysts point to earnings that have generally been better than feared and to hopes that inflation may be moderating.

"Even though results are not great, they have been good enough," said Angelo Kourkafas, investment strategist at Edward Jones.

"What has helped the markets rebound aside from good enough earnings is the declining inflation expectations."

The broad-based S&P 500 ended at 3,961.63, down 0.9 per cent for the day, but up 2.5 per cent for the week.

The Dow Jones Industrial Average shed 0.4 per cent to 31,899.29, while the Nasdaq Composite Index dropped 1.9 percent to 11,834.11.

Snap plunged nearly 40 per cent as it announced plans to slow recruitment in the wake of a difficult market as it competes with TikTok and others.

The results also weighed on Facebook parent Meta Platforms, which dropped 7.6 per cent, and Google parent Alphabet, which shed 5.8 per cent amid worries over Internet advertising.

Among other companies reporting results, American Express gained 1.9 per cent, Schlumberger won 4.3 per cent, Mattel fell 7.1 per cent and Verizon tumbled 6.7 per cent.

Join ST's Telegram channel and get the latest breaking news delivered to you.