Stocks fell on Friday as Wall Street’s summer rally appeared to falter, putting the S&P 500 and Nasdaq Composite on pace to end the week on a sour note.
The S&P 500 fell 1.3%, while the Dow Jones Industrial Average slid 300 points, or 0.88%. The Nasdaq Composite slid 2%.
For the week, the S&P 500 was last down 1.03%, while the Dow was 0.11% higher. The tech-heavy Nasdaq is currently down more than 2% for the week.
The halt in Wall Street’s summer rally came as minutes from the Federal Reserve’s July meeting and comments from St. Louis Federal Reserve President James Bullard seemed to indicate that the central bank would continue hiking rates in the near term, putting a damper on investors’ hopes of a slowdown.
Not everyone is convinced this week’s moves mark the end of the market’s recent rebound.
“I wouldn’t expect a complete reversal going back to the June lows or something like that, however, the choppiness we’re seeing today and this week does reflect a lot of the bear case that’s out there,” said FBB Capital Partners’ Mike Bailey. “I think seeing the market trade sideways or seeing a bit of a pause in that rally definitely makes sense based on some of the facts that we’re seeing out there.”
In other news, Bed Bath & Beyond shares cratered after Ryan Cohen dumped his entire stake in the retailer. The move seemed to sour sentiment among meme stock traders who have bet big on the stock in recent months.
Meanwhile, about $2 trillion worth of options contracts are set to expire on Friday, which could lead to increased volatility in the market as some holders may be forced to move into their positions.
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