Stocks Slump As Wall Street Faces Another Week Of Losses

Stocks are tumbling again on Friday as the sharp, recent surge for interest rates keeps weighing on Wall Street. Some disappointing profit reports from companies also shook what’s been the market’s main pillar of support, Stan Choe and Yuri Kageyama reported for the Associated Press (AP).

Photo Insert: Most stocks were falling on Wall Street, with health care companies among the biggest weights.

The S&P 500 was 1.8% lower in midday trading and on pace to close out a third straight losing week. The Dow Jones Industrial Average was down 605 points, or 1.7%, at 34,187, as of 12:05 p.m. Eastern time, and the Nasdaq composite was 1.5% lower.

Markets around the world are feeling similar pressure on rates and inflation, particularly in Europe as the war in Ukraine pushes up oil, gas, and food costs. Germany’s DAX lost 2.5% Friday, while France’s CAC 40 fell 2%. The FTSE 100 in London dropped 1.4%.

In Asia, Japan’s Nikkei 225 fell 1.6%, and South Korea’s Kospi lost 0.9%. Stocks in Shanghai added 0.2% after authorities there promised to ease anti-virus controls on truck drivers that are hampering food supplies and trade.

On Wall Street, most stocks were falling, with health care companies among the biggest weights. HCA Healthcare slumped 18% after reporting weaker earnings per share than analysts expected. The hospital operator also cut its forecasted ranges for revenue and earnings this year.

Verizon Communications sank 6.2% after it said it expects earnings for the year to fall at the lower end of the range it had previously forecast. The company also reported slightly weaker revenue than expected for the first three months of the year.

Retailer Gap dropped 17.8% after it cut its forecast for sales and said the CEO of its Old Navy business will leave the company. Kimberly-Clark, the manufacturer whose brands include Huggies diapers and Kleenex, rose 9.3% for one of the biggest gains in the S&P 500 after it reported stronger profit and revenue for the latest quarter than analysts expected.

SVB Financial Group jumped 10.3% after also reporting stronger earnings per share than expected. The parent company of Silicon Valley Bank raised its forecast for revenue this year, partly due to higher interest rates and strong demand for loans from technology and other clients.

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