#Market Snapshot: Stock futures point to more losses for Wall Street, again led by tech amid Netflix gloom

The Nasdaq Composite 
COMP,
-1.30%
 closed down 186.23 points, or 1.3%, to 14,154.02, after a 2.1% gain earlier in the day, making for the index’s largest same-day reversal since April 7, 2020. 

Read: When no stock-market lead is safe, here’s what history shows the Nasdaq’s near-term returns look like (it’s not pretty)

What’s driving the markets?

A volatile week of trade was set to leave the S&P 500 with its third straight weekly loss, down 3.8% as of Thursday. That would be the worst weekly return since late October 2020 if that drop holds, according to FactSet data.

Read: ‘Good luck! We’ll all need it’: U.S. market approaches end of ‘superbubble,’ says Jeremy Grantham

The stats are worse for the Nasdaq, which was poised for its fourth straight weekly loss, with one more down session putting it on track for the largest string of losses since 2012. Week to date the index is down 4.9%, which is also already the worst weekly performance since late October 2020.

After entering correction territory on Wednesday, the Nasdaq deepened that rout on Thursday. The index is down 11.85% from its record close in November. meeting the definition of a market correction.

Both Wednesday and Thursday saw indexes log gains early in the day only to surrender them later, rattling investors. Markets have been dogged by a bond market selloff and fears of Federal Reserve tightening to combat surging inflation, and that has particularly hit rate-sensitive technology stocks.

A bumpy start to earnings season has also dented investor confidence, with a string of downbeat bank results, and fresh gloom from Netflix
NFLX,
-1.48%,
after the streaming service reported far weaker than expected subscriber growth numbers. Those shares were down 20% in premarket trading, with shares of rival Disney
DIS,
-1.66%,
with its Disney+ and Hulu services, off more than 3% and streaming device maker Roku
ROKU,
+0.52%
down nearly 5%.

Opinion: Netflix admits that it is time to grow up, but Wall Street isn’t happy about it

Peter Cardillo, chief market economist at Spartan Capital, said lowered guidance from major banks has been a key factor for this earnings season. “Nevertheless, we are at the beginning of the earnings season and remain confident that overall grades will bolster the market’s fundamentals, thereby softening the blow of rising yields,” he said.

The yield on the 10-year Treasury note
TMUBMUSD10Y,
1.783%
was down 1 basis point at 1.79%, but has soared this month, from 1.5% at the start of January.

Elsewhere on Friday, crude prices were falling, with U.S. crude
CL00,
-1.32%
down 1.5% and gold prices
GC00,
-0.24%
were off 0.5% to $1,834 an ounce.

Cryptocurrencies were also under pressure, with bitcoin
BTCUSD,
-7.44%
tumbling below a key support level at $40,000, dragging the sector lower. The losses come a day after Russia’s central bank proposed banning the use and mining of cryptos.

Leading economic indicators for December, due at 10 a.m. Eastern, were the only data on tap.