Dow Jones Industrial Average Extends Losses As Rising Rates Weigh Techs

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com -- The Dow Jones posted its fourth consecutive weekly loss on Friday as rising Treasury yields continued to weigh on stocks technology, after data showing that inflation remains very high fueled fears of a Federal Reserve rate hike The Dow Jones Industrial Average lost 1.

02%, or 336 points, and the Nasdaq Composite lost 1 7%.

The S&P 500 fell 1%, closing its biggest weekly loss of 2023 The core personal consumption expenditure price index, or core PCE deflator, the Fed's preferred measure of inflation, rose of 4, 7% year-on-year in January, beating the economic forecast of 4.

3% The inflation print came just as data showed a stronger-than-expected consumer, bolstering expectations that the Federal Reserve may have to raise the interest rate more than expected.

"I think the trajectory [of Fed rate hikes] will probably be 25 basis points, maybe three times more," Eric Diton, chairman and CEO of The Wealth Alliance, said in an interview Friday to Yasin Ebrahim of Investing.

com The Fed's policy measures are working, but it takes time, adds Diton.

"It may take one to two years for this tightening to take full effect " Treasury yields added to their recent gains after the data was released, with the 10-year yield nearing the 4% mark, triggering a rout in rate-sensitive economic sectors including technology.

Alphabet, the parent of Google (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) closed down about 2% Netflix (NASDAQ: NFLX), meanwhile, continued to add to its loss from the previous day, although some on Wall Street believe the streaming giant's recent announcement to cut subscription prices by 20-60% in more than 30 countries could drive growth.

“Although on the surface these are significant price reductions, we believe that the CVNA) fell 20% after the used-vehicle e-commerce platform reported a bigger-than-expected loss amid rising costs and interest rates Carvana expected sales volume to continue to decline in the first quarter as it continues its transition to scale its business after an aggressive growth strategy in the pandemic.

“This transition period “could last a few years before it can refocus on revenue growth,” Deutsche Bank said in a note after lowering its price target on the stock from $16 to $10 In other news, Adobe Systems (NASDAQ: ADBE) plunged nearly 8% after learning that the US Department of Justice could file an antitrust lawsuit as early as next month to block the company's $20 billion acquisition of Figma.

As the broader market posts its biggest weekly loss of the year, some suggest this could be a buying opportunity as the leadership of tech stocks is expected to fade "I think this is a buying opportunity," Diton said, citing market sectors such as value stocks, small caps and emerging markets.

“Small caps have reached the lowest valuations we have seen since the financial crisis,” he added "VS' is international, which is outperforming like no one would believe, and emerging markets.

I think those are the sectors that are going to outperform ".