Traders work during the New York Stock Exchange (NYSE) opening bell on March 19, 2020 on Wall Street in New York City. – US stocks open mixed, Dow -0.4%, Nasdaq +0.1% (Photo by Johannes EISELE / AFP) (Photo by JOHANNES EISELE/AFP via Getty Images)
JOHANNES EISELE | AFP | Getty Images
The Nasdaq Composite fell for a fifth consecutive week, falling around 1.40% to $12,144.66 in the past five days, capping its longest weekly losing streak since 2012.
Over the past week, the Fed raised interest rates by 0.5% and again warned of “far too high” inflation, which rattled markets. The Nasdaq fell more than 5% on Thursday, a day after the Fed meeting.
The woes of the tech-heavy Nasdaq represent a significant shift in investor sentiment toward growth stocks, which have steadily risen in 2020 and 2021.
Inflation worries, Fed hikes and worries about deteriorating economic conditions affecting consumer spending are forcing investors to reassess some of the best performing stocks of recent years.
The Nasdaq Composite peaked on November 19 at $16,057.44, and it has lost almost a quarter of its value since then.
Some of the biggest declines came from stocks that reported profits during the week. Lyft fell 36% after providing weak guidance for the current quarter. Bill.com fell 28% after reporting slowing revenue growth, Cloudflare fell 24% after forecasting a possible loss in the current quarter, and Confluent fell 23% after growth slowed. was below expectations.
Some of the index’s top tech companies also fell during the week. Amazon fell more than 6% and Microsoft lost just over 1% in value. Apple stock rose 0.29% at the end of the week after announcing last week that it was more concerned about supply shocks than consumer demand.
There have been ten times in the past decade that the Nasdaq Composite has reported a losing streak of at least four weeks. In October and November 2012, the Nasdaq fell for six consecutive weeks.
The Nasdaq is also on course for its worst quarterly performance since the last three months of 2018.