Markets Fall on a Drop in Consumer Sentiment

Markets Closed May 12, 2023

Key Takeaways

  • Markets fell on Friday, May 12, 2023 after a big drop in consumer confidence, and amid concerns about a possible U.S. default.
  • Solar stocks jumped on First Solar's purchase of Swedish solar tech firm.
  • The U.S. dollar rose versus other major currencies.

U.S. equities ended the week on a down note following a surprising drop in consumer confidence, and with still no agreement reached in Washington to raise the debt ceiling and keep the government from defaulting.

The Dow was led lower by shares of Nike (NKE) and JPMorgan Chase (JPM), which fell more than 1%. Gen Digital (GEN) was the worst-performing stock in the S&P 500 as the security firm previously known as NortonLifeLock gave current quarter guidance below analysts’ forecasts. 

Tesla (TSLA) shares started the day higher, but they ended up down as CEO Elon Musk announced he has chosen former NBCUniversal executive Linda Yaccarino to replace him as head of X, formerly known as Twitter. It was another tough day for investors of regional banks as shares slipped on renewed concerns that the struggles the banks have faced recently aren’t over. 

Netflix (NFLX) shares dropped on a report the biggest streaming provider wants to cut spending by $300 million this year. Shares of cruise lines and booking sites were down.

Solar energy stocks took off after First Solar (FSLR) purchased Swedish solar technology firm Evolar for up to $80 million. News Corp (NWSA) shares added 8% as the owner of the Wall Street Journal and other information sites exceeded quarterly earnings and revenue estimates. 

Shares of Charles Schwab (SCHW) moved up after the financial services firm reported total client assets increased by 1% in April. Insulet Corporation (PODD) shares jumped as the medical device manufacturer posted better-than-anticipated quarterly results and raised its outlook.

Oil futures slipped 1%. Gold prices fell. The yield on the 10-year Treasury note advanced. The U.S. dollar rose against the euro, pound, and yen. Bitcoin and Ether traded lower, but most other major cryptocurrencies were higher.

S&P 500 Gainers Losers May 12, 2023
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