Stocks snap four-week winning streak

Stocks snap four-week winning streak

U.S. stocks snapped a four-week winning streak on Friday, as all three indexes closed lower on the session and on the week as the summer rally lost momentum.

When the closing bell rang on Friday, the tech-heavy Nasdaq was down 2%, while the benchmark S&P 500 was off 1.3%, and the Dow down 0.9%.

For the week, the Nasdaq dropped over 2%, the S&P 500 fell 1.2%, while the Dow's weekly losses were a more modest 0.2%.

The biggest stock story of the week came to an eventful conclusion on Friday, as shares of Bed Bath & Beyond (BBBY) crashed, falling 40% after GameStop (GME) chairman Ryan Cohen sold his entire 11.8% position in the company during Tuesday and Wednesday.

Cryptocurrencies were also in focus on Friday, with bitcoin (BTC-USD) falling around 8% to trade near $21,500, its lowest level since late July. The price of ethereum (ETH-USD) was also down more than 8% to trade below $1,700.

Like stocks, crypto markets have been enjoying a summer rally after bottoming mid-June. 

WTI crude oil futures settled little-changed on Friday, losing 0.2% to settled at $90.29 a barrel. On Tuesday, crude futures settled at their lowest level — $86.53 a barrel — since January 25.

In individual stock news, a collapse in shares of Bed Bath & Beyond was the big story on Friday, with the stock down around 40% after GameStop chairman and activist investor Ryan Cohen disclosed on Thursday he exited his 11.8% position in the company.

Cohen's RC Ventures disclosed plans to sell its stake in the troubled retailer in an SEC filing published Wednesday, and Cohen's updated filing on Thursday showed he sold out of his Bed Bath & Beyond holdings during the trading day on Tuesday and Wednesday.

A view of a Bed Bath & Beyond Inc franchise in Boca Raton, Florida January 6, 2010. The home furnishing retailer is expected to report third-quarter results on Wednesday. REUTERS/Joe Skipper   (UNITED STATES - Tags: BUSINESS)
A view of a Bed Bath & Beyond Inc franchise in Boca Raton, Florida January 6, 2010. REUTERS/Joe Skipper

Bloomberg also reported late Thursday that Bed Bath & Beyond has hired Kirkland & Ellis, a law firm known for its work in bankruptcy and restructuring situations, to help manage its increasing debt load.

This week's rally in Bed Bath & Beyond reignited the meme stock trade that has periodically swept markets since January of 2021, when volatile trading in GameStop and AMC made national headlines.

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Last modified on Wednesday, 24 August 2022 01:55
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