Stocks traded lower on Friday after a disappointing earnings report from Snap Inc. (NYSE: SNAP) snapped a three-day tech-heavy rally for Wall Street. The Nasdaq Composite dropped over 1.8%, while the Dow Jones Industrial Average lost over 100 points and the S&P 500 fell by about 1%.
While the session brought losses, all three market benchmarks ended the week with gains. The Dow closed up 1.7% higher, while the S&P 500 climbed over 2% and the Nasdaq advanced by 3%.
Here's how the market settled to close out the week:
S&P 500 Index (NYSE: SPY): -0.93% or -37.27 points to 3,961.68
Dow Jones Industrial Average (NYSE: DIA): -0.43% or -137.61 points to 31,899.29
Nasdaq Composite Index (NASDAQ: QQQ): -1.87% or -225.50 points to 11,834.11
Earnings were in focus on Friday, with shares of Snap plummeting nearly 40% during the session after the social media company missed analyst expectations on both top and bottom lines and announced plans to slow hiring.
Snap said it's Q2 earnings were impacted by a more challenging economic climate, slowing demand for its online platform, increased competition from other social media apps and Apple's (NASDAQ: AAPL) iOS update.
Analysts from Goldman Sachs (NYSE: GS) and JPMorgan (NYSE: JPM) downgraded the stock after the earnings upset, with JPM analysts raising concerns from CEO Evan Spiegel not providing upfront commentary post earnings.
"Clearly [with] Q2 results & the way the [earnings] call was handled, Snap has an even bigger hill to climb going forward," JPM analysts said Friday.
Shares of other tech companies that rely on ad-revenue, like Alphabet (NASDAQ: GOOG), Meta Platforms (NASDAQ: META), Pinterest (NASDAQ: PINS) and Twitter (NYSE: TWTR) all declined on Friday.
Twitter also reported earnings before the bell, and missed expectations on earnings, revenue and user growth. This quarter marks the social media app's biggest revenue miss on record, with results falling 11% below estimates.
For the Q2 revenue results, Twitter cited ad industry headwinds similar to the ones Snap is facing, as well as "uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk."
Shares of Verizon (NYSE: VZ) also slumped after its lackluster earnings report, with the telecommunications company cutting its full-year financial outlook in response to decreased consumer spending. Verizon's earnings echoed concerns from AT&T (NYSE: T) earlier this week that subscription growth is easing amid decades-high inflation.