Stocks wobble, Netflix plunges on Wall Street

Stocks wobbled between gains and losses in late morning trading on Wall Street Friday as major indexes head for another weekly loss.

The S&P 500 fell 0.6% as of 11:49 a.m. Eastern. The benchmark index is on track for its third straight weekly loss and its worst weekly loss since October 2020.

The Dow Jones Industrial Average fell 67 points, or 0.2%, to 34,647 and is also on pace for its third weekly loss in a row.

The tech-heavy Nasdaq fell 1% and has been hit particularly hard by expectations for higher interest rates. As investors prepare for higher interest rates, shares in pricey tech companies and other expensive growth stocks look relatively less attractive. The index is on track for its fourth straight weekly loss and losses in recent months had by Wednesday left it in what Wall Street considers a market correction, or 10% below its peak.

Stocks have been falling all week amid concerns about rising inflation and an upcoming increase in interest rates. Technology stocks have been directing, and often abruptly redirecting, momentum in the market.

Technology stocks were mostly muted after earlier pulling

the market lower on Friday. Communications stocks were the biggest weight on the market.

Streaming video service Netflix plunged 20.7% after it delivered another quarter of disappointing subscriber growth. Disney, which has also been trying to grow its subscriber base for its streaming service, fell 4.9%.

A mix of retailers, travelrelated companies and other companies that rely on direct consumer spending also fell.

Bond yields fell significantly. The yield on the 10-year Treasury fell to 1.76% from 1.83% late Thursday. The drop weighed on bank stocks, which rely on higher yields to charge more lucrative interest on loans.

Household good makers and utilities, which are typically considered less-risky investments, made gains.

Inflation fears and concerns about the impact of higher interest rates have prompted a cautious shift in the broader market after a solid year of gains in 2021.

Supply chain problems and higher raw materials costs have prompted companies in a wide range of industries to raise prices on finished goods. Many of those companies have warned investors that their profit margins and operations continue feeling the pinch in 2022.

Rising costs have raised concerns that consumers will start to ease spending because of the persistent pressure on their wallets. The latest retail sales data for December was surprisingly disappointing and revealed a decline in sales.

The Federal Reserve is now expected to raise interest rates earlier and more often than it had previously signaled in order to fight rising inflation that threatens to derail a further economic recovery. The central bank could begin raising rates as early as March.