U.S. Markets Hammered Again On Friday

(RTTNews) - The major U.S. markets were down again on Friday, hugging both sides of the unchanged line in the morning before going into freefall in the afternoon to end in the red for the fourth straight session.

For the day, the Dow plummeted 450.02 points or 1.30 percent to finish at 34,265.37, while the NASDAQ plunged 385.10 points or 2.72 percent to close at 13.768.92 and the S&P 500 tumbled 84.79 points or 1.89 percent to end at 4,397.94.

The particularly harsh drop on the NASDAQ was fueled by a weak earnings report from Netflix, which set off a cascade of selling pressure among the other markets.

Surging bond prices also drove the markets lower, exacerbating interest rate concerns; most analysts believe a rate hike of at least 25 basis points from the FOMC is imminent in March.

Also on Friday, Treasury Secretary Janet Yellen offered her view that U.S. economic policy improves on Reagan-era supply-side economics.

"Modern supply-side economics seeks to spur economic growth by both boosting labor supply and raising productivity, while reducing inequality and environmental damage," Yellen told the World Economic Forum's virtual Davos gathering.

In economic news, the Conference Board's leading economic index ticked slightly higher and was in line with expectations.

Oil prices fell finished lower on Friday for the second straight session, although they came up from session lows. Crude's correction continued after touching a seven-year high earlier in the week on demand optimism and short-term supply disruptions. West Texas Intermediate crude futures were down 0.86 percent at $84.81 per barrel after falling as much as 3.2 percent earlier.

Gold moved lower on Friday, handing back gains from the previous day as the dollar held its ground and was on track for its best week in a month against major rivals amid a sell-off in global equities.

Spot gold dipped 0.45 percent to $1,832.10 per ounce, while U.S. gold futures were down half a percent at $1,834.30. Investor sentiment has soured amid worries about higher interest rates and growing concerns surrounding Ukraine.