S&P 500 turns lower on Friday and is now in correction territory

The S&P 500 turned lower Friday, pushing the S&P 500 into correction territory, down 10% from its high close in July 2023.

The S&P 500 joined the Nasdaq Composite in correction territory on Friday after falling more than 10% from its July high close. It dropped to a new five-month low.

The broader index last traded at 4,118.57 during intraday trading, roughly 10% off the prior closing high of 4,588.96. The major average was last down by 0.5%.

The benchmark index slipped 0.5%, putting it down more than 10% from this year’s peak. It also hit its lowest level in five months. The Dow Jones Industrial Average traded 312 points lower, or 0.9%, pressured by declines in JPMorgan Chase after CEO Jamie Dimon said he planned to sell 1 million shares next year. A 6% decline in Chevron also pushed the Dow lower. The Nasdaq Composite held 0.3% higher thanks to shares of Amazon.
which added more than 8% after the e-commerce giant trounced analysts’ expectations for revenue and earnings in the third quarter. Other megacap stocks such as Microsoft
followed Amazon shares higher.

All three major averages are on track for steep weekly losses. The Dow and S&P 500 are down 2% and 2.6%, respectively, for the week. The Nasdaq has fallen 2.8% in that time, dragged down from steep declines in Meta Platforms and Google-parent company Alphabet.

The decline in key tech stocks pushed the Nasdaq into correction territory after falling more than 10% from its closing high in July on Wednesday. This week also saw the index record its worst trading day since February.

Disappointing earnings have pressured the market this week. Ford dropped more than 10% after the company missed third-quarter expectations and pulled its guidance for the year, citing the UAW strike. Chevron shares were down after the energy giant reported earnings.

Traders also weighed new inflation data after the core personal consumption expenditures reading for September was released ahead of the Federal Open Market Committee meeting next week. Core PCE increased 0.3% in last month and 3.7% year over year, matching estimates from economists polled by Dow Jones. Consumer spending increased 0.7%, however, surpassing estimates of 0.5%. PCE is the Federal Reserve’s preferred inflation gauge.