Stocks tumble on Friday, Nasdaq snaps eight-week winning streak: Live updates

Stocks ended lower on Friday, with Wall Street posting a losing week.

The Dow Jones Industrial Average fell 219.28 points, or 0.65%, to 33,727.43. The S&P 500 slid 0.77% to 4,348.33, while the Nasdaq Composite was lower by 1.01% to 13,492.52.

— Sarah Min

A recovery rally for regional bank stocks appears to have failed, as the sector has badly underperformed the broader market this week.

With less than 30 minutes left in trading, the SPDR S&P Regional Banking ETF (KRE) is down 8.3% for the week.

— Jesse Pound

Art Hogan, chief market strategist at B. Riley Wealth Management, says it's "not at all surprising" for markets to take a breather this week as investors digest hawkish commentary from Federal Reserve Chair Jerome Powell.

"To the extent that in a very short period of time, the Nasdaq 100, and the Nasdaq Composite and the S&P 500 went from being overbought on the RSI to being back inside the normal range, I think we've done a pretty good job of stabilizing a bit," said Hogan.

"I wouldn't be surprised if next week is more of the same," he added.

— Sarah Min

The annual Russell reconstitution rules go into effect after the close on Friday, and it will cause changes in the index followed by many large funds, such as the Vanguard Russell 1000 Growth ETF (VONG).

Stocks are determined to be growth or value by using a book to price valuation, as well as one backward looking growth metric and one forward looking growth metric, said Catherine Yoshimoto, director of product management for the Russell US Indexes. Some stocks appear partially in both growth and value indexes to help reduce turnover.

"About 35% of the Russell 1000 float-adjusted market cap is purely growth, 35% is purely value. And then 30% in the middle shares characteristics of growth and value," Yoshimoto said.

The changes are based on market data as of April 28. Here are some of the key statistics from the reconstituted indexes.

• The break point between large and small cap stocks is now $4.2 billion, down from $4.6 billion last year. There are some exceptions due to a process FTSE Russell calls "banding"
• Technology is now 50% of the Russell 1000 Growth Index, up from 46.3% last year
• Two notable partial additions to Russell 1000 Value: Nike and Union Pacific, which are now 47% and 57% categorized as value. Both were fully in the growth index last year.
• Alphabet and Meta Platforms are now 100% in the growth index. The stocks were categorized as 13% and 78% value, respectively, last year.
• Dell Technologies was one of the stocks deleted from Russell indexes due to new rules around stockholder voting rights.

— Jesse Pound

With second-quarter earnings season just a couple of weeks away, analysts are placing their bets on which parts of the market are looking the best now.

Among S&P 500 sectors, those with the highest level of buy ratings are energy (64%), communication services (62%) and information technology (60%), according to John Butters, senior earnings analyst at FactSet.

Sectors with the lowest level are utilities and materials with 49% each, followed by consumer staples with 44%. Staples also has the highest proportion of sell ratings at 10%.

—Jeff Cox

Apple was higher Friday afternoon, managing to hit new all-time highs even as the major averages declined. Shares were last up by 0.1%.

— Sarah Min, Scott Schnipper

The 2023 market rally and expectation-defying U.S. economy have come with the background of a deeply inverted yield curve. The 2-year Treasury yield has now traded above the 10-year yield for almost a full year.

However, history shows that the recession-predictive powers of an inverted yield curve can take a while to come to fruition. In a note to clients on Thursday, Strategas strategist Chris Verrone compared the current period 1979 and 2007, when bear market rallies flamed out and the economy fell into a recession.

Read more about the yield curve's history on CNBC Pro.

— Jesse Pound

When it comes to meetings, the Federal Reserve likes to stick to a schedule: Eight two-day meetings a year, six weeks apart except on two occasions, always on Tuesday and Wednesday, with minutes to be released three weeks after the meetings.

In 2024, though, there's a little matter that's going to get in the way of that for the November session.

The presidential election, to be held Nov. 5, is forcing the central bank to push its meeting to Nov. 6-7, meaning a rare Wednesday-Thursday gathering. The Fed has done so in other years when there have been conflicts with elections, primarily so that staff members and officials traveling from other districts don't have to vote via absentee ballot.

Here's the full-year schedule: Jan. 30-31, March 19-20, April 30-May 1, June 11-12, July 30-31, Sept. 17-18, Nov. 6-7, Dec. 17-18. The first meeting of 2025 will be held Jan. 28-29.

—Jeff Cox

These are the stocks making the biggest moves during Friday's trading session:

Starbucks — Starbucks shares lost nearly 3% after a union representing workers said strikes are slated to begin Friday in response to claims that its not allowing Pride decorations at cafes.

CarMax — The used car retailer popped 8.8% after beating the consensus estimate of analysts for its first-quarter revenue. CarMax posted $7.69 billion, higher than the $7.49 billion anticipated by analysts polled by StreetAccount.

Virgin Galactic — Virgin Galactic shed 18% after announcing a $300 million capital raise via a common stock offering. The space tourism company also said it plans to raise an additional $400 million to grow its fleet of spacecrafts.

Read the full list of stocks moving midday here.

— Samantha Subin

Bank of America is growing increasingly confident in GitLab's ability to harness artificial intelligence to to disrupt the development, security, and operation enterprise space.

"Version 16 incorporates new AI features, improved user experience, new security and compliance capabilities, and the ability to extend the platform to data science teams," wrote Koji Ikeda in a Thursday note, on the heels of a launch webinar from the source code management software company.

"We believe GitLab is continuing its journey of becoming a category leading AI-powered enterprise DevSecOps platform," the analyst added.

Ikeda retained a buy rating and $55 price target on shares, implying 11% upside from Thursday's close. Shares have added about 9% in 2023.

— Samantha Subin

Health care and consumer discretionary stocks have been able to avoid the S&P 500's more than 1% slide this week.

Both sectors in the S&P 500 are up 0.4% on the week. UnitedHealth and Merck & Co. led the health stocks up with advances of more than 5% and 4%, respectively. CarMax helped pull the consumer discretionary sector up with a nearly 6% jump on the week.

The other nine S&P 500 sectors traded down on a week-to-date basis. Energy and real estate were the two worst performing sectors, with each dropping more than 3%.

— Alex Harring

Stocks declining in the New York Stock Exchange outnumbered advancers 2.1 to 1 in midday trading.

— Sarah Min

Goldman Sachs is remaining bullish on MongoDB coming out of its investor session and is optimistic about how artificial intelligence can benefit the data developer platform.

"We came away from MongoDB's investor session with more clarity on its AI product roadmap, which we expect to be accretive to Atlas," analyst Kash Rangan wrote in a note to clients Thursday. (Atlas is the name of the company's cloud database.)

In addition to reiterating his rating, Rangan raised his price target to $440 per share. His target implies shares could rally about 13.3% from where they finished Thursday's session.

— Alex Harring

A slew of homebuilding stocks notched fresh all-time highs during Friday's trading session. That includes D.R. Horton, last trading at a level not seen since its June 1992's initial public offering. NVR and PulteGroup last traded near levels dating back to 1993 and 1972, respectively.

These names also hit fresh highs:

• Royal Caribbean trading at levels not seen since Feb, 2021
• McCormick trading at levels not seen since May, 2022
• AmerisourceBergen Corporation trading at all-time highs back to its IPO in April 1995
• Boston Scientific trading at all-time high levels back to its IPO in May 1992
• Cardinal Health trading at all-time highs back to its IPO in 1983
• McKesson trading all-time highs back through our history to 1983
• Roper trading at levels not seen since May 2022
• Martin Marietta trading at levels not seen since January 2022

These are the stocks hitting new lows:

• Newell Brands trading at lows not seen since April 2009
• Nasdaq trading at lows not seen since June 2022
• International Flavors & Fragrances trading at lows not seen since June 2013
• Alexandria Real Estate Equities trading at lows not seen since March 2020

— Samantha Subin

Roth MKM analyst Rohit Kulkarni hiked estimates for Meta Platforms, saying that the company's traditional advertising business is showing signs of strength.

"Our industry and channel checks hint at continued improvement in META's ad engine along with likely incremental ad allocations returning from TikTok over the past six months," the note said.

Kulkarni also hiked the price target on Meta to $315 per share from $255. The stock closed at just under $285 per share on Thursday.

— Jesse Pound

Manufacturing activity in the U.S. slowed more than expected in June, according to an S&P flash PMI reading released Friday that was the lowest in six months.

The index registered a 46.3, down from the 48.4 in May and below the 49.0 Dow Jones estimate. As the reading measures the level of companies reporting expansion, anything below 50 represents contraction.

On the services side, the reading of 54.1 was a two-month low and below the 54.9 in May. The composite index came in at 53.0, below the 54.3 from the previous month but still showing expansion even though it was a three-month low.

—Jeff Cox

Stocks fell to start Friday's session.

The Dow Jones Industrial Average dropped 247 points, or 0.75%. The S&P 500 is lower by 0.85%, while the Nasdaq Composite fell 1.04%.

— Sarah Min

Barclays strategist Venu Krishna warned that, while "the primary beneficiaries of AI have the potential to grow into their valuations, the same cannot be said for the broader Tech sector which appears frothy."

The S&P 500 tech sector has outperformed this year, rallying nearly 40%. The tech-heavy Nasdaq Composite, meanwhile is up 30%.

Krishna also noted that, "Our basket of AI-exposed stocks in the US is up over 50% YTD and has pulled the broader Tech sector along with it, whereas the rest of the SPX (ex-AI, ex-Tech) is actually flat over the same time frame."

"Will the new AI wave lead to long-term structural expansion of corporate profit margins to justify the valuations of the broader market?"

— Fred Imbert, Michael Bloom

Data center stock Equinix could stand to benefit from an artificial intelligence play, according to Bank of America.

BofA upgraded Equinix stock on Friday after positive takeaways from the company's investor day.

"EQIX remains our top data center pick as a function of its strong balance sheet, demonstrable pricing power, and position as a call option on the emerging incremental AI demand opportunity," analyst David Barden said.

CNBC Pro subscribers can read the full story here.

— Brian Evans

Health care providers are on pace for a winning week, bucking the trend in the major averages. As of Thursday's close, the iShares Healthcare Providers ETF (IHF) is up by almost 1.8%, and is headed for its third positive week in four.

Among the names bolstering the ETF is Cano Health, DocGo, Acadia Healthcare Company, UnitedHealth Group and more.

— Sarah Min, Gina Francolla

These are some of the stocks making the biggest moves in premarket trading on Friday:

• Starbucks — The coffee shop chain slid 1.1% after a union representing workers said some stores will strike beginning Friday following claims that the company has not allowed Pride month decor in cafes. Workers at more than 150 stories have agreed to join the strikes taking place over the next week, according to the union, with more working on authorizations.
• CarMax — The used car retailer advanced 6.8% after beating Wall Street expectations on first-quarter revenue.
• Virgin Galactic — Shares tumbled 12.4% in premarket trading after the space tourism company said it raised $300 million through a common stock offer. Virgin Galactic hopes to raise another $400 million as its looks to expand and improve its spacecraft fleet.

See the full list here.

— Alex Harring

Wells Fargo says Under Armour will struggle in the near-term due to three major headwinds in a Friday downgrade.

Analyst Will Gaetner listed overexposure to North American wholesale, lofty excess inventory and a new chief executive as potential downside risks to the stock.

"Retailers remain cautious with orders, as headwinds (inflationary pressures, lower gov't subsidies) continue to weigh on demand," Gaetner said.

The stock was down more than 3% in the Friday premarket.

CNBC Pro subscribers can read the full story here.

— Brian Evans

Deutsche Bank says it still isn't clear how C3.AI will differentiate itself amongst artificial intelligence peers.

The firm downgraded C3.AI stock after the company's investor day, which only provided incremental updates."

"While we appreciate the vast opportunity presented by AI, the event did nothing to ease our skepticism on the true differentiation of the company's platform, its traction with customers or its ability to hit its constantly evolving financial targets," Deutsche Bank analyst Brad Zelnick said.

CNBC Pro subscribers can read the full story here.

— Brian Evans

U.S. Treasury yields fell on Friday as investors digested remarks from Federal Reserve officials, including Chairman Jerome Powell. Policymakers reaffirmed that further rate hikes would likely be needed to bring inflation closer to the central bank's 2% target.

At 4:29 a.m. ET, the yield on the 10-year Treasury was down by over six basis points to 3.7308%. The 2-year Treasury yield was trading at 4.752% after falling by more than four basis points.

— Sophie Kiderlin

Singapore's consumer price index rose 5.1% year-on-year in May, less than the 5.5% expected by economists polled by Reuters and the lowest since March 2022.

The headline inflation rate was also lower than the 5.7% recorded in April, while MAS core inflation — which strips out prices for accommodation and private transport — came in at 4.7%, easing slightly from the 5% in April.

— Lim Hui Jie

Friday's open indicated there would be no respite from the week's sell-off, with the Stoxx 600 index lower by 0.2%.

Germany's DAX shed 0.55%, as the U.K.'s FTSE 100 and France's CAC 40 both declined by around 0.3%.

— Jenni Reid

Malaysia's inflation rate eased to 2.8% in May, its third straight month of decline and the eighth month of decline in nine months.

Government data showed that inflation was mainly driven by increase in prices in restaurants and hotels, as well as for food and non-alcoholic beverages.

However, the slower increase in transport prices offset to a certain extent Malaysia's inflation from rising higher, the country's statistics department said.

— Lim Hui Jie

Japan's business activity expanded at a slower rate in June, according to flash estimates by the au Jibun bank.

The composite purchasing managers index fell to 52.3 in June, compared to 54.3 in May.

A PMI reading above 50 indicates expansion in the sector, while a reading below 50 indicates contraction.

Manufacturing activity notably fell into contraction territory, with the manufacturing PMI at 48.4 compared to May's 50.9.

Services remained in expansionary territory, but saw a softer rise. June PMI came in at 54.2 compared to 55.9 in May.

— Lim Hui Jie

Japan's headline inflation rate came in at 3.2% in May, easing from the 3.5% recorded in April.

Core inflation — which strips out prices of fresh food — also came in at 3.2%, lower than April's 3.4%, but slightly above the 3.1% expected by economists polled by Reuters.

This reading was the 14th straight month that the consumer price index had stayed above the Bank of Japan's price target of 2%.

— Lim Hui Jie

Thursday's tech turnaround – propelled by the likes of Amazon – came too late to avert the Nasdaq Composite's decline on the week. The tech-heavy index is now on pace for its worst week since April.

The Nasdaq Composite is down 0.4% for the week through Thursday's close – a slip that will snap its run of eight positive weeks. The S&P 500 and the Dow Jones Industrial Average are also down for the week, off 0.6% and 1%, respectively. Those declines would end a 5-week win streak for the S&P 500 and a 3-week run of gains for the Dow.

In the grand scheme of things, the three indexes are still enjoying a strong June. The Nasdaq is up 5.4% for the month, while the S&P 500 has gained 4.8%. The Dow is up more than 3% for the month.

-Darla Mercado, Chris Hayes

Virgin Galactic's stock fell nearly 14% after the bell as securities filings revealed that the space tourism company has raised $300 million through a common stock offering.

The company also aims to raise an additional $400 million to develop and grow its space fleet.

— Michael Sheetz, Samantha Subin

Apple shares jumped to a fresh all-time high of $187.04 late Thursday.

The action occurred as gains in tech shares spurred a turnaround for the Nasdaq Composite and the S&P 500. Both indexes managed to cut a three-day run of losing sessions, but they remain on pace for negative weeks.

Apple shares closed 1.6% higher Thursday, ending at $187.00.

— Darla Mercado, Chris Hayes

Stock futures opened flat on Thursday evening.

Futures tied to the S&P 500 traded inched 0.03% higher, while Nasdaq-100 futures gained 0.1%. Futures connected to the Dow Jones Industrial Average rose 23 points.

— Samantha Subin