4:21pm: Tesla among the week's laggards
The Dow closed Friday down 287 points, 0.9%, at 33,127, the Nasdaq Composite fell 202 points, 1.5%, to 12,984 and the S&P 500 slid 54 points, 1.3%, to 4,224. The small-cap Russell 2000 index declined 22 points, 1.3%, to 1,681.
Investors reacted to the 10-year Treasury yield climbing past 5% for the first time since 2007.
Meanwhile, shares of Tesla are down about 15% this week overall after the electric vehicle producer missed expectations on both revenue and earnings with its latest quarterly results.
12:05pm: S&P 500 set to end the week down nearly 3%
US stocks were sharply lower in noon trading after the 10-year Treasury yield surpassed 5% for the first time since 2007.
At midday, the Dow lost 114 points to 33,300 while the S&P 500 eased 32 points at 4,246 and the tech-heavy Nasdaq fell 147 points to 13,039.
"The stock market is watching the bond market and doesn’t like what it sees," CIBC Private Wealth Management chief investment officer David Donabedian said.
"Yields are rising, even with the relatively good news about inflation."
Notable movers included shares of Schlumberger NV, which shed more than 3% after the world's largest offshore driller’s third-quarter revenue missed analyst expectations.
9:45am: Stocks steady after tumultous week
Stocks opened modestly lower as rising bond yields and the ongoing conflict in the Middle East continue to weigh on sentiment.
Shortly after the opening bell, the Dow Jones Industrial Average was down 8.61 points, 0.02%, at 33,405.56, the S&P 500 was down 3.24 points, 0.07%, at 4,274.76 and the Nasdaq Composite was down 16.62 points, 0.1%, at 13,169.56.
“It has been a tumultuous and eventful week for the global financial markets. The ongoing situation in the Middle East has triggered a surge of volatility in the oil and stock markets, compelling investors to re-evaluate their strategies and shift their focus from riskier assets to “safer” investments,” said Fawad Razaqzada at FOREX.com
On a quieter dau for company news, American Express fell 2.3%, despite profit beating estimates as it warned of growing credit losses.
The credit card company indicated it was expecting rising credit losses, putting away $1.2 billion in the period for potentially bad loans, up from just under $800 million a year earlier.
Intuitive Surgical (NASDAQ:ISRG) fell 3.9% after results after Thursday's close while CSX Corp was little changed after its numbers.
7:00am: Wall Street prepares for further falls
US stocks futures slipped as bond yields continue to climb and the Federal Reserve chair Jerome Powell kept his options open regard to future interest rate increases.
Investors were also rattled by reports of more clashes in the Middle East which sent the price of Brent crude above $93/barrel.
The Pentagon saying it’s seeing an increase in drone attacks in Iraq and Syria while an American destroyer also shot down cruise missiles and drones launched by Yemen-based Houthi militants toward Israel.
In pre-market trading, futures for the Dow Jones Industrial Average were 0.3% lower, while those for the S&P 500 were down 0.3%, and contracts for the Nasdaq 100 futures fell 0.3%.
On Thursday, Powell said inflation remains too high and lower economic growth will likely be needed to bring it down.
He said additional evidence of "persistently above-trend growth," or a reversal of the recent decline in job openings and softening of wage growth could cause the Fed to reconsider its current rate pause.
If the US economy develops in this way, it "could put further progress on inflation at risk and could warrant further tightening of monetary policy," he added.
Nonetheless, the CME Fed Watch tool puts the chances of rates remaining unchanged at the November Fed meeting at 92%.
There had been some hope that Powell would echo the words of other Fed officials who said that the rise in bond yields means further interest rate rises were likely unnecessary but he chose to follow a more cautious path.
The 10-year Treasury briefly popped above 5% on Thursday, a 16-year high, before settling at 4.94%, keeping pressure on equities.
Elsewhere, results from Amex will grab investor’s attention while SLB, the oilfield services provider, formerly known as Schlumberger is also set to unveil figures.