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The S&P 500 plunged by 1.7% on Friday, Feb. 21, as weak economic data and earnings sent the benchmark index lower for the second straight session.
Cloud services provider Akamai Technology shares plummeted after its 2025 outlook showed revenue growth would be slower than expected.
Covid vaccine maker Moderna shares jumped after reports of a new coronavirus in China.
Major U.S. equities indexes fell to end a holiday-shortened week. Markets stepped back from record-high levels as traders reacted to underwhelming economic data and earnings forecasts.
The S&P 500 fell by 1.7% to notch a second straight day of losses, coming after hitting a record high in the prior two sessions. The Dow Jones Industrial Average also declined by 1.7%, while the Nasdaq fell by 2.2%. All three major market indexes declined for the week after the two-day selloff.
Stocks fell Friday as a series of economic data releases shook investor confidence in markets. Existing home sales fell more than expected, while inflation concerns weighed on consumer sentiment.
Shares of cloud services provider Akamai Technologies (AKAM) plunged the most of any S&P 500 constituent, falling by 21.7%. The company reported quarterly results that met or exceeded analyst expectations, but its 2025 revenue outlook came up short. While the company laid out an ambitious long-term revenue goal of 10% growth, it also expects a 10% decline in services revenue this year, raising questions about whether the tech firm can provide near-term growth.
Shipping giant Old Dominion Freight Line (ODFL) fell 8.5% on worries that Amazon’s (AMZN) efforts to expand its freight shipping could undercut demand for its services.
Nuclear energy providers also saw their stocks decline after federal government energy regulators said it would be 2026 before rules are ready that would allow power providers to put facilities on-site at data centers. Investors worried the delay in regulatory certainty could prevent some companies from signing deals now. GE Vernova (GEV) fell by 8.8%, while Constellation Energy (CEG) was down 8.1%, and Vistara (VST) shares declined by 7.8%.
UnitedHealth Group (UNH) shares fell 7.2% on reports the Department of Justice are investigating whether the health insurer provider was overdiagnosing conditions to secure additional payouts from the Medicare Advantage program. UnitedHealth led losses in the Dow.
Shares of Covid-vaccine maker Moderna (MRNA) jumped by 5.3% to be the best performer in the S&P 500 after a new coronavirus was reportedly discovered in bats in China. The rebound comes after declines in the prior session when the drugmaker reported wider-than-expected losses on weak vaccine demand.
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