The stock market experienced a sharp selloff in tech and communications services stocks on Friday, leading to a mixed day for major indexes. However, the Dow Jones Industrial Average managed to stay afloat, thanks to strong earnings results from American Express.
At the close of trading, the Dow was up 0.6% at 37,986, with American Express (AXP) leading the way with a 6.2% surge after reporting higher-than-expected earnings for the first quarter. The credit card company revealed earnings of $3.33 per share on revenue of $15.8 billion, with consumer spending up 8% year-over-year.
Looking ahead, analyst Stephen Biggar sees continued healthy spending volume from AXP’s affluent cardmembers, which could drive good cardmember growth in the future.
However, not all stocks fared well on Friday. Netflix (NFLX) saw a 9.1% decline after reporting strong Q1 results but announcing it will stop reporting quarterly membership numbers in 2025. This news raised concerns among investors about the company’s future growth prospects.
In addition, several other tech stocks, including Alphabet (GOOGL) and Meta Platforms (META), also experienced declines ahead of their upcoming earnings reports.
One notable loser on Friday was Super Micro Computer (SMCI), which plunged 23% without any specific news driving the selloff. The AI server company is set to release its third-quarter results next week, and investors may be taking profits after the stock’s impressive run so far this year.
Looking ahead to next week, investors can expect more volatility in the market as Big Tech earnings reports continue to roll in, and the March Personal Consumption and Expenditures (PCE) Price Index is released. This data, which measures consumer spending and inflation, could have a significant impact on market sentiment.
Despite the potential for increased volatility, experts like Larry Adam remind investors not to panic, as pullbacks and spikes in volatility are common in the market. The S&P 500 is still up significantly from its recent lows, indicating that the overall trend remains positive.
