The 2023 Market Rally Stalls on Inflation, Rate Concerns

Table showing the performance of major U.S. financial indexes on Feb. 10, 2023


Key Takaways

  • U.S. equities indexes closed out a losing week with a mixed performance on Feb. 10.
  • The Dow and the S&P 500 saw slight gains during Friday's session, while the Nasdaq moved lower on the day.
  • Fossil fuel providers were among the best-performing stocks on the S&P 500, with oil prices soaring on news of production cuts by Russia.

U.S. equities were mixed on Feb. 10, finishing a losing week that saw the rally to start 2023 stall because of worries about inflation and the Fed's efforts to slow it down. The Dow and S&P 500 were in the green, while the Nasdaq declined. For the week, the Nasdaq sank 2.4%, the S&P 500 dropped 1.1%, and the Dow lost about 0.2%.

The big winners in Friday's session were fossil fuel providers. They held most of the top spots among the best-performing S&P 500 stocks as oil prices jumped 2% following Russia's announcement that it would reduce output. However, the leading gainer in the index was DexCom (DXCM), with shares soaring 10% after the maker of diabetes testing devices exceeded profit and sales estimates.

Strong revenue guidance lifted shares of financial technology firm Global Payments (GPN). Motorola Solutions (MSI) shares rose after the telecom equipment maker beat earnings and revenue forecasts and posted a better-than-expected profit outlook.

Shares of Lyft (LYFT) lost more than a third of their value as the ride-sharing service reported a surprise fourth quarter loss and predicted weaker-than-expected current quarter revenue. The nasty winter storm that caused massive travel cancellations in December hurt profit at booking site Expedia Group (EXPE), and its shares tumbled.

News Corp Job Cuts

News Corp (NWSA) shares sank after the media giant controlled by Rupert Murdoch fell short of projections for profit and sales, and announced a 5% reduction in its workforce. The eight-day winning streak for Tesla (TSLA) ended, as shares dropped 5% after CFRA analyst Garrett Nelson reduced his rating from strong buy to buy.

Shares of The Walt Disney Company (DIS) slid 2%, falling for a second straight day after they had initially advanced on the entertainment giant's earnings and reorganization plan. Salesforce (CRM) shares led losses in the Dow, reversing course from yesterday's jump when it was learned that activist investor Dan Loeb took a stake in the cloud software company.

The yield on the 10-year Treasury note moved higher. Gold futures fell. The U.S. dollar climbed against the euro and pound but lost ground to the yen. Prices for major cryptocurrencies declined, with Bitcoin (BTC/USD) trading below $22,000 for the first time in three weeks.

Table showing the S&P 500 stocks with the biggest gains and losses on Feb. 10, 2023


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