Nasdaq, S&P 500 Tumble To Lowest Closing Levels In Over Four Months

Stocks moved sharply lower over the course of the trading day on Friday, extending the downward move seen over the two previous sessions. With the extended decline, the Nasdaq and the S&P 500 fell to their lowest closing levels in well over four months.

The major averages saw further downside going into the close, ending the session near their worst levels of the day. The Nasdaq plunged 202.37 points or 1.5 percent to 12,983.81, the S&P 500 tumbled 53.84 points or 1.3 percent to 4,224.16 and the Dow slid 286.89 points or 0.9 percent to 33,127.28.

For the week, the Nasdaq plummeted by 3.2 percent, the S&P 500 dove by 2.4 percent and the Dow tumbled by 1.6 percent.

The continued weakness on Wall Street came amid ongoing concerns about the recent surge in treasury yields to sixteen-year highs.

Overnight, the yield on the benchmark ten-year note climbed above 5 percent for the first time since July 2007 but has given back ground since then.

The recent advance by yields reflects continued worries about the outlook for interest rates, with the Federal Reserve signaling rates will remain higher for longer than previously anticipated.

During a speech on Thursday, Fed Chair Jerome Powell described inflation as “still too high” and warned additional monetary policy tightening may be needed.

Powell also reiterated Fed officials are willing to keeping policy restrictive until they are confident inflation is on a downward path.

A report on personal income and spending in the month of September is likely to be in focus next week, as it includes readings on inflation said to be preferred by the Fed.

Fears the Israel-Hamas war may escalate into a broader regional crisis also contributed to the negative sentiment on Wall Street.

Israeli Defense Minister Yoav Gallant told troops gathered at the Gaza border on Thursday that they would soon see the Palestinian enclave “from inside.”

Additionally, reports emerged that U.S. troops are being targeted at several military bases across Iraq and…