Nasdaq has worst month since 2008

Nasdaq has worst month since 2008

Nasdaq has worst month since 2008

Losses for technology stocks accelerated on Wall Street Friday afternoon, pushing the Nasdaq toward its biggest monthly loss since the 2008 financial crisis. A sharp drop in Amazon was also weighing on indexes after the internet retail giant posted its first loss since 2015.

The S&P 500 was down 3.1% as of 3:36 p.m. Eastern, with technology and communication stocks among the biggest drags on the benchmark index. The Dow Jones Industrial Average fell 741 points, or 2.1%, to 33,193 and the Nasdaq slid 3.5%.

Major indexes have been shifting between slumps and rallies throughout the week as the latest round of corporate earnings hit the market in force. Investors have been reviewing a particularly heavy batch of financial results from big tech companies, industrial firms and retailers.

The volatile week caps off a dismal month for stocks as traders fret about the tough medicine the Federal Reserve is using in its fight against inflation: higher interest rates. That will increase borrowing costs across the board for people buying cars, using credit cards and taking out mortgages to buy homes.

The S&P 500 is on track for an 8.2% loss for April, which would be its worst month since the beginning of the pandemic. The Nasdaq is on pace for a 12.7% loss, which would be its biggest monthly decline since October 2008.

Big Tech has been leading the market lower all month as traders shun the high-flying sector. Tech had posted gigantic gains during the pandemic and now is starting to look overpriced, particularly with interest rates set to rise sharply as the Fed steps up its fight against inflation.

Internet retail giant Amazon slumped 14.2%, the biggest decline in the S&P 500, after reporting a rare quarterly loss and giving investors a disappointing revenue forecast. The weak update from Amazon comes as Wall Street worries about a potential slowdown in consumer spending along with rising inflation.

Prices for everything from food to gas have been rising as the economy recovers from the pandemic and there has been a big disconnect between higher demand and lagging supplies.