Major market averages opened lower on Friday even as surging Treasury yields took a back seat early on. The Nasdaq Composite (COMP.IND) was -1.0%, while the S&P 500 (SP500) was -0.5%, and the Dow (DJI) was -0.3%. The recent rise in yields have also led 30-year fixed-rate mortgages to top 7% this week, with affordability concerns leading to some potential headwinds for the housing sector.
Speaking of real estate, the world’s second-largest economy is on watch, with the property market at the heart of its troubles. China Evergrande, the world’s most indebted property developer, has filed for Chapter 15 bankruptcy protection, further shaking up the confidence of investors who are already worried about a deflationary spiral.
On the tech front, Meta Platforms (META) has followed Apple and Microsoft into correction territory, with shares falling 10% from recent highs. Tesla, another one of the Magnificent Seven, is already in a bear market, down more than 20% from its recent peak.
U.S. stocks finished lower again on Thursday, and the S&P 500 (SP500) looks set to record its third consecutive weekly decline, in what would be the longest such period for the benchmark index since February.