U.S. stocks plunged Friday as tech giants reported quarterly results that offered tepid outlooks for 2021, a spike in coronavirus cases and amid a tense political climate.
The Dow Jones Industrial Average, which is on track to close out its worst week and month since March, fell 1.38% by 11:00 ET. The index has dropped more than 7% this week
The S&P 500 dropped 1.6% and Nasdaq Composite fell 2.52%.
Alphabet, Amazon and Facebook all reported quarterly results late Thursday. Alphabet (GOOGL), which exceeded expectations, gained 4.67%.
“The big tech earnings were not that bad but markets did not respond positively, so that does suggest a deeper sense of negativity in the market,” Seema Shah, chief strategist at Principal Global Investors, told the Wall Street Journal.
The outlook may still be strong for Amazon, according to analysts.
“While we acknowledge the concerns around 4Q20 profitability as investments in the fulfillment network push into 4Q and COVID-19 costs remain elevated, we think these investments should lead to greater share gains going forward as eCommerce adoption accelerates due to COVID-19,” JPMorgan analysts said in a note Friday.
Meanwhile, there are concerns about a spike in COVID-19 cases, while Europe has issued harder crackdowns. Capitol Hill has not reached a deal on a stimulus with Election Day on Tuesday.