US stocks slump, erasing gains from a rally a day earlier

U.S. stocks slumped broadly in morning trading Friday, pulling the Dow Jones Industrial Average down more than 300 points and erasing the market’s gains from a day earlier. The major indexes are now back into the red for the year.

Amazon, Alphabet, Mattel and other big companies fell sharply after turning in disappointing quarterly results. Technology and consumer-focused companies accounted for much of the slide.

Media and communications stocks, banks and health care companies also took heavy losses. Bond prices rose, sending yields lower, as investors continued to seek less risky assets.

“We’re going through this transition where, earlier in the year, the corporate earnings results were just a blowout and now they’re more mixed,” said David Lefkowitz, senior equity strategist Americas at UBS Global Wealth Management. “That’s causing some of this volatility.”

The S&P 500 index slid 44 points, or 1.6 percent, to 2,661 as of 11:31 a.m. Eastern Time. The Dow Jones Industrial Average dropped 305 points, or 1.2 percent, to 24,677. The average was briefly down more than 500 points.

The tech-heavy Nasdaq composite lost 156 points, or 2.1 percent, to 7,161. The Russell 2000 index of smaller-company stocks gave up 23 points, or 1.6 percent, to 1,477. The Dow and S&P 500 are now down for the year again.

Stock trading turned volatile in October, with big sell-offs in the sectors that have powered the bulk of the gains during the market’s long bull run. Disappointing quarterly results and outlooks have stoked investors’ jitters over future growth in corporate profits, a key driver of the stock market. Traders are worried that rising interest rates and the escalating U.S.-China trading dispute could hurt the economy and dampen corporate earnings growth.

Amazon and Google parent company Alphabet slumped after both companies reported quarterly reported revenue figures that fell short of analysts’ estimates. Amazon sank 8.3 percent to $1,634.57 while Alphabet slid 3.7 percent to $1,063.19.

Mattel dropped 2.6 percent to $13.48 after the toy maker served up quarterly results that fell short of analysts’ forecasts.

In a bright spot, chipmaker Intel gained 3 percent to $45.63 after it reported strong quarterly results and raised its outlook.

The Commerce Department said the U.S. economy’s gross domestic product, a measure of total output of goods and services, grew at a robust annual rate of 3.5 percent in the July-September quarter. That’s higher than what many economists had been projecting and followed an even stronger 4.2 percent rate of growth in the second quarter. The two quarters marked the strongest consecutive quarters of growth since 2014.

U.S. bond prices rose. The yield on the 10-year Treasury note fell to 3.08 percent from 3.13 percent late Thursday.

Benchmark U.S. crude rose 0.1 percent to $67.43 a barrel in New York. Brent crude, the benchmark for international oil prices, rose 0.4 percent to $77.20 a barrel in London.

The dollar fell to 111.54 yen from 112.61 yen on Thursday. The euro rose to $1.1381 from $1.1359.

Major European stock indexes fell. Germany’s DAX slipped 1.1 percent, while France’s CAC 40 dropped 1.8 percent. Britain’s FTSE 100 slid 1.3 percent. In Asia, Japan’s benchmark Nikkei 225 lost 0.4 percent, while South Korea’s Kospi dropped 1.8 percent. Australia’s S&P/ASX 200 was flat. Hong Kong’s Hang Seng sank 1.1 percent.

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