Wall Street in Reverse: Indices Drop, Adobe Plummets

The American stock markets continued their downward trend on Friday, moving further away from their historical peaks. The Dow Jones Industrial Average suffered a setback of 0.49 percent, closing at 38,715.67 points, which represents a barely noticeable weekly decline. The comprehensive S&P 500 also saw a decrease of 0.62 percent, finishing at 5,118.33. For the technology-focused Nasdaq 100, the outlook was not bright: a decline of 1.06 percent to 17,823.29 points was reflected here, indicating a similar weekly loss. Gloomy economic data dampened investor sentiment. The Empire State Index, which reflects the mood in the New York manufacturing sector, expressed an unexpectedly strong downturn for March. Similarly, the development of consumer confidence, which according to the University of Michigan's findings worsened against forecasts, was displeasing. Meanwhile, current inflation data shattered hopes of an imminent interest rate cut by the US Federal Reserve (Fed). Speculations about an upcoming easing of monetary policy had been circulating even before the Fed's meeting in June. However, a growing number of investors are now even doubting this timing for the beginning of such easing measures. Market participants are now watching the upcoming Fed meeting next Wednesday with great anticipation. Adobe, the laggard in the Nasdaq-100, had to absorb a harsh share price plunge of 14 percent. The software giant failed to impress with its forecasts for the current quarter. Adobe is given special attention at times when advancements in artificial intelligence are producing emerging startups specializing in the creation of image content. Goldman Sachs analyst Kash Rangan attributed the stock loss to doubts about the company's business goals for the fiscal year 2024, which fell short of his optimistic expectations. Disappointment also arose from Smartsheet and Ulta Beauty with their business targets; their stocks lost 6.6 and 4.5 percent, respectively. In the semiconductor sector, which had already felt pressure in Europe, initiatives by the Chinese government caused unrest: the call on local electric car manufacturers such as BYD and Geely to increasingly purchase chips from domestic producers to support the Chinese semiconductor industry and reduce dependence on Western suppliers weighed on semiconductor shares such as AMD and Micron, which in the Nasdaq 100 recorded declines of 3 and 2.6 percent, respectively. Boeing, however, was able to reassure its shareholders somewhat. Despite the downgrade of its credit outlook from "Positive" to "Stable" by US rating agency Fitch, their shares recovered slightly and rose by 1.5 percent, allowing them to reach the top of the Dow.