Stocks started Friday stable, but began tumbling in the afternoon, with tech shares pacing the broad-based retreat.
The tech-heavy Nasdaq dropped 1.5%, ending the week lower by 1.1%. The S&P 500 and the Dow also declined, losing 0.7% and 0.3%, respectively, but managed to keep in positive territory for the week (+0.6%; +1.6%). The small-cap Russell 2000 under-performed (-1.9%), extending its weekly loss to 2.0%.
All eyes were on Amazon (AMZN 1817.27, +9.27) coming into Friday's session, with investors hoping that its better-than-expected Q2 earnings report could restore some faith in FAANG names, which lost a lot of momentum on Thursday due to Facebook's (FB 174.89, -1.37) earnings-induced plunge.
Amazon was up around 4.0% in pre-market trading, but weakened substantially intraday, trimming its gain to just 0.5% by the closing bell. The petering out didn't do much good for the bulls, which, just a few days ago, were looking to ride another FAANG-led rally back into record territory.
The top-weighted technology sector finished a way behind the ten other groups on Friday, losing 2.0%. Intel (INTC 47.68, -4.48, -8.6%) weighed heavily on the group as concerns over its slow roll out of next-generation chips overshadowed its better-than-expected Q2 earnings report. Twitter (TWTR 34.12, -8.82) was also a drag on the tech space, plunging 20.5%, after reporting a decline in monthly active users and disappointing guidance.
Graph: Google Finance
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