Dow tumbles 475 points, S&P 500 suffers worst day since January as inflation woes erupt: Live updates

U.S. stocks ended Friday's session in the red.

The Dow Jones Industrial average dropped 475.84 points, or 1.24%. The S&P 500 shed 1.46%, and the Nasdaq Composite declined 1.62%.

All three major averages notched weekly losses. The 30-stock Dow ended 2.37% lower for the week, with the S&P 500 and tech-heavy Nasdaq also down 1.56% and 0.45%, respectively.

— Hakyung Kim

This year's market rally is far from a broad-based one, according to Barclays.

The percentage of constituents in the S&P 500 outperforming the index has risen from very low levels, but still remains far from the highs of the past few years, such as during the broad-based rally in 2021, analyst Venu Krishna wrote in a Friday note.

"The U.S. equity rally is finally starting to broaden out, but we are starting from extraordinarily narrow levels and have a ways to go before establishing a truly broad base," Krishna said. "In the meantime, rates uncertainty is a growing risk, particularly as correlation tends to jump during selloffs."

The analyst added that the correlation between market leaders and the rest of the index jumps during sell-offs, which is a "key risk" with the current market rally having yet to establish a broad base. This year, the S&P 500 is up nearly 7.5%.

— Pia Singh

The first-quarter earnings season is only just getting started, with 6% of the S&P 500 reporting results so far.

Based on the blended growth rate, earnings are expected to grow 2.7% from a year ago, while revenues are expected to grow 3.3%, according to LSEG data.

Communication services is expected to see the biggest year-over-year earnings growth at nearly 27%.

— Samantha Subin, Robert Hum

Thursday's broad-market bounce back was a head fake, according to Wolfe Research's technical analysis team.

"Everyone can relax…after 2-weeks of agita and what must have seemed like an eternity for many, the MAG7 basket finally went out at fresh all-time highs, led by Amazon's first record closing high since November of 2021," analyst Rob Ginsberg wrote in a Thursday note. "In all seriousness, outside of these stocks ripping, today was a pretty uninspiring day following yesterday's sell off."

Ginsberg pointed out that although the S&P 500 gained 0.7% on Thursday, rebounding from a sell-off fueled by inflation concerns, the Invesco S&P 500 Equal Weight ETF is trading back to its lows and had closed in the red. He added that declining volume outpaced advancing volume on Thursday.

— Pia Singh

Friday's sell-off in the S&P 500 was broad-based. In afternoon trading, there were 476 names last trading in negative territory, according to FactSet data. All 11 S&P 500 sectors were lower as well, with materials and information technology the greatest laggards.

JPMorgan was among the biggest decliners in the broad market index, down more than 5% after releasing net interest income guidance that disappointed investors. Otherwise, the major bank had beat expectations on the top and bottom lines.

Notably, Apple was among the few advancers, last rising just 0.3%. Insurance companies such as Progressive and Allstate were outperformers, gaining roughly 1% each. Occidental Petroleum gained 0.4%.

— Sarah Min

The majority of the "Magnificent Seven" stocks struggled amid Friday's sell-off.

Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla all traded down more than 1%. Apple was the only member on track for gains with a 0.5% advance.

Despite Friday's moves, all but two of the megacap tech names are still on track to finish the week in the green. Microsoft has slipped about 1% this week, while Meta has dropped more than 2%.

— Alex Harring

The S&P 500 tumbled as much as 1.7% Friday afternoon, dipping below its 50-day moving average for the first time since Nov. 3, 2023.

The 50-day moving average is a technical indicator traders watch to measure a short-term trend for a given asset.

If the S&P 500 were to close below the 50-day moving average, it could portend the start of a downward trend. The last time the broad-market index closed below that level was Nov. 2, 2023.

 ­— Darla Mercado, Nick Wells

The S&P 500 is headed for a losing week, with the broad index on track for a 1.5% loss.

Globe Life is the biggest laggard in the index, headed for a nearly 52% weekly loss. Solventum and CarMax have slumped about 12% each.

Arista Networks and Zoetis have shed about 9% each this week, while Deckers Outdoor and CVS Health have declined more than 8%.

Other notable laggards include Builders FirstSource, Invesco, MGM Resorts and Paramount Global, with shares down more than 7%.

— Samantha Subin

These are the stocks moving the most in midday trading.

• Globe Life — The life insurance stock bounced 10% after plummeting more than 50% during Thursday's session. The slide was induced by a report from Fuzzy Panda Research, where the firm disclosed a short position in the stock and made allegations of insurance fraud.
• JPMorgan — The bank fell 5% after disclosing that its net interest income level could fall short of Wall Street analysts' expectations in 2024, despite beating both top- and bottom-line estimates in its last quarter.
• Zoetis — The pet medication company sank more than 7%. The decline came after a report from The Wall Street Journal that looked into potential side effects from Zoetis's arthritis drugs Librela and Solensia.

Read the full list of stocks moving here.

— Lisa Kailai Han

Twelve stocks in the S&P 500 hit new 52-week highs during Friday's session. Of these names, five tickers traded at new all-time highs.

Here were the five stocks that hit this milestone:

• Alphabet C shares trading at all-time highs back to the special distribution on April 2, 2014 (the nonvoting share was created, and it began trading on April 3, 2014)
• Alphabet A shares trading all-time highs back to its initial public offering on Aug. 19, 2004
• Diamondback Energy trading at all-time highs back to its IPO in October 2012
• Exxon trading at all-time highs back to when it was listed on the New York Stock Exchange in 1920
• NRG Energy trading at all-time highs back to its IPO in May 2000

— Lisa Kailai Han, Christopher Hayes

The Dow is on pace to see outsized losses this week as more than two out of every three of its members trade down.

The blue-chip index has slipped more than 2% so far this week. If that holds, it will be the biggest drop of the three major indexes.

Intel, Boeing and JPMorgan led the 30-stock index lower, with all three sliding more than 6%. Verizon was the next-worst performer at more than 5% lower.

Of the handful of names bucking the downtrend, some were able to see notable gains. Nike climbed about 4%, while Apple added 3.5%.

— Alex Harring

As another earnings season kicks off, UBS expects corporate earnings to grow from 7% to 9%, similar to the growth rate in the fourth quarter of 2023. However, this time around, the growth should diversify, the firm said.

"Growth is starting to broaden out with non-Magnificent 7 stocks poised to generate positive, albeit modest, growth for the first time since 4Q22. This trend should accelerate over the balance of the year," David Lefkowitz, chief investment officer of U.S. equities, wrote in a Thursday note.

Lefkowitz says solid earnings growth, combined with forecast interest rate cuts by the Federal Reserve and artificial intelligence enthusiasm, should continue to support equity gains ahead.

— Hakyung Kim

Gold hit a fresh all-time high Friday on the back of elevated demand for safe-haven assets amid geopolitical tensions. The bullion reached an intraday peak of $2,418.2, gaining 2.8% week to date and on pace for its third straight week of gains.

Spot gold also hit a record high of $2,400.35 earlier in the session. Prices are up nearly 3% for the week.

— Yun Li, Gina Francolla

The CBOE Volatility Index, or VIX, rose to its highest level on Friday since October 2023.

The VIX is a popular gauge of uncertainty in the market. Using S&P 500 stock index options prices, it measures the market's expectations of near-term volatility. 

— Hakyung Kim

JPMorgan shares tracked for their worst session in more than two years as investors reacted to the bank's earnings report.

The bank's shares dropped around 6% in midday trading. If that holds through the closing bell, it will mark the worst day since Jan. 14, 2022, when the stock lost 6.2%.

That drop came as JPMorgan said net interest income, a key measure of what it makes through lending activities, could be somewhat short of what Wall Street expects this year. CEO Jamie Dimon also warned about persistent inflationary pressures weighing on the economy.

Still, the financial giant beat expectations on both lines. The stock is up more than 8% compared with the start of 2024.

— Alex Harring

The dollar index, which tracks the U.S. dollar against six major currencies, is up 1.5% this week. Inflation concerns have attracted investors to the dollar, viewed as a safe-haven asset — but there are signs of a looming pullback, according to Joe Tuckey, head of FX analysis at Argentex Group PLC.

"Markets had no choice but to pile into the dollar this week as chances of an early summer rate cut have evaporated," said Tuckey. "That said, another 0.5% move will see the dollar firmly entering 'overbought' territory, as the DXY (Dollar index) registers above 70 on the RSI. Such overbought readings can act as a precursor to a dollar retracement."

— Hakyung Kim

Exxon Mobil hit an all-time high Friday as crude oil prices rallied on red-hot tensions in the Middle East.

Exxon stock hit an intraday high of $123.74 as U.S. crude oil broke above $87 a barrel on reports that Israel is preparing for an imminent attack by Iran. Exxon was last up 1.48% at $123.59 a share.

The energy sector rose just under 1% as the broader S&P 500 fell 0.7% on persistent inflation concerns. APA Corporation, Devon Energy and Occidental Petroleum led the energy sector's move higher.

— Spencer Kimball

The consumer sentiment index for April came in at 77.9, slightly below a Dow Jones consensus estimate of 79.9, according to the University of Michigan's Surveys of Consumers.

"A slight uptick in inflation expectations in April reflects some frustration that the inflation slowdown may have stalled. Overall, consumers are reserving judgment about the economy in light of the upcoming election, which, in the view of many consumers, could have a substantial impact on the trajectory of the economy," Surveys of Consumers Director Joanne Hsu said in a statement.

Year-ahead inflation expectations rose to 3.1% from 2.9%. Long-run expectations also ticked up to 3% from 2.8%.

— Fred Imbert

Barclays analyst Anshul Pradhan said inflation is clearly on a different track than the Federal Reserve had planned for after the data this week. In a higher-for-longer environment, he said investors should continue being short on the U.S. 10-year Treasury, as the firm has advised over the past several weeks.

"Despite the sell-off, financial conditions remain easy," Pradhan wrote to clients. "We believe inflation progress will require tighter financial conditions, which should entail still higher long-term rates."

— Alex Harring

U.S. stocks declined in their start to Friday's trading session.

The Dow Jones Industrial Average fell 258 points, or 0.7%. The S&P 500 and Nasdaq Composite shed 0.7% and 0.9%, respectively.

— Hakyung Kim

In another troubling sign for inflation, import prices to start 2024 posted their largest three-month gain in about two years, the U.S. Department of Labor reported Friday.

Boosted by a 4.7% jump in fuel, import prices rose 0.4% in March, higher than the 0.3% Dow Jones estimate. That was the biggest increase for the three-month period that ended May 2022, according to the department's Bureau of Labor Statistics.

On a 12-month basis, import prices rose 0.4%, the first increase since January 2023.

The increase in fuel prices was the biggest since September 2023. Import prices for foods, feeds and beverages accelerated 1.6% on the month, the largest gain since July 2023.

— Jeff Cox

Crude oil futures rallied Friday as Israel is reportedly preparing for a direct attack by Iran this weekend, in what would be the biggest escalation of Middle East tensions since the start of the Israel-Hamas war last October.

The West Texas Intermediate contract for May delivery gained $2.03, or 2.39%, to $87.05 a barrel. June Brent futures added $1.77, or 1.97%, to $91.51 a barrel. Oil prices had fallen in the previous session as inflation fears temporarily outweighed geopolitical risk.

Israel is preparing for a direct attack by Iran on southern or northern Israel as soon as Friday or Saturday, a person familiar with the matter told The Wall Street Journal. A person briefed by Iran's leadership told the Journal that no final decision has been made, though plans for a strike are under discussion.

A direct attack by Iran against Israeli territory could send Brent crude oil prices to $100 a barrel, Bob McNally, president of Rapidan Energy and former Bush administration energy official, told CNBC.

— Spencer Kimball

These are some of the stocks making big moves in Friday's premarket.

• JPMorgan — Shares of the bank dipped 2.4%. Despite beating expectations on both lines for the quarter, JPMorgan said net interest income could come in slightly lower than what analysts penciled in. CEO Jamie Dimon also warned of persistent inflationary pressures hampering the economy.
• BlackRock — The investment manager advanced 2% on the back of a stronger-than-forecast report for the first quarter.
• Globe Life — The insurer jumped 12.8% in Friday's extended trading, regaining some ground after tumbling more than 50% in the prior session. 

See the full list here.

— Alex Harring

Wells Fargo shares were down more than 1% after the banking giant reiterated its full-year net interest income guidance, which fell short of expectations. That seemed to overshadow better-than-expected earnings and revenue for the first quarter.

— Fred Imbert

JPMorgan Chase shares were down more than 3% despite the company posting first-quarter results that beat expectations.

Earnings per share came in at $4.44, while revenue totaled $42.55 billion. Analysts polled by LSEG, formerly known as Refinitiv, expected a profit of $4.11 per share on revenue of $41.85 billion.

— Fred Imbert

BlackRock shares were up 2% in the premarket after the asset management giant posted better-than-expected first-quarter results.

The company earned an adjusted $9.81 per share on revenue of $4.73 billion. Analysts polled by LSEG, formerly known as Refinitiv, expected a profit of $9.35 per share on revenue of $4.68 billion. The company's assets under management came in at $10.473 trillion, beating a StreetAccount estimate of $10.4 trillion.

— Fred Imbert

The Bank of Korea left its key policy rate unchanged for the 10th consecutive time at 3.50%.

The central bank noted in a statement that it is still "premature to be confident that inflation will converge on the target level" given how there is a "high degree of uncertainty associated with the outlook for consumer price inflation."

South Korea's consumer prices rose 3.1% year on year in March, still far off from its 2% target.

"The Board, therefore, will keep its restrictive monetary policy stance for a sufficient period of time until such confidence is established," the bank said.

— Lee Ying Shan

Singapore's monetary authority has held its policy steady, leaving the width and level of its policy band unchanged.

Unlike other economies, Singapore uses exchange rate settings to decide monetary policy instead of a benchmark rate, where it shifts its policy band to adjust the strength of the Singapore dollar against an undisclosed basket of currencies.

The monetary authority also said it expects inflation in the city-state to stay elevated in the immediate quarters ahead, before "stepping down more discernibly" in the fourth quarter of 2024 and into 2025.

— Lim Hui Jie

Here is where the major averages stand for the week ahead of Friday's trading:

• The S&P 500 is down 0.10%
• The Nasdaq Composite is up 1.19%
• The Dow Jones Industrial Average is down 1.14%
• The Russell 2000 is down 1.01%

— Lisa Kailai Han

Shares of Globe Life bounced back 11% during Thursday's extended trading hours. The stock sold off hard during Thursday's session, ending the day 53% lower, after a report from short seller Fuzzy Panda Research alleged multiple occurrences of insurance fraud.

"We uncovered extensive allegations of insurance fraud ignored by management despite being obvious and reported hundreds of times," the research firm wrote. It also noted that the organization's structure is a multilevel marketing strategy that borders on a pyramid scheme.

In the same report, Fuzzy Panda Research also disclosed that it had taken a short position in the life insurance stock.

— Lisa Kailai Han

Stock futures traded near flat on Thursday night.

Futures tied to all three major indexes were trading unchanged shortly after 6 p.m. ET.

— Lisa Kailai Han