The market volatility was further fueled by the expiration of $3.4 trillion worth of stock options, one of the busiest options days of the year. Despite recent losses, the Dow, Nasdaq, and S&P are all seeing positive returns in 2023, largely driven by big tech stocks like Nvidia. The market is now looking ahead to the Fed’s Open Market Committee meeting next week, which will reveal any changes to the federal funds rate and expectations for monetary policy.
Key takeaways:
- The Dow Jones Industrial Average, S&P 500, and Nasdaq each registered their worst days since August 24, largely due to a wipeout among the largest technology names.
- Adobe's shares dropped 5% in Friday trading despite beating expectations for sales and profits, as it forecasted current-quarter sales in line with analyst projections.
- Stock options worth $3.4 trillion are set to expire on Friday, making it one of the busiest options days of the year and adding volatility to the market.
- The biggest market moving event next week is the Fed’s Open Market Committee meeting, which will reveal if the central bank will immediately shift the federal funds rate and its expectations for monetary policy moving forward.