S&P 500, Nasdaq tick lower as coronavirus worries weigh

The S&P 500 and the Nasdaq edged lower on Friday as concerns about an economic hit from the coronavirus outbreak outweighed a boost from Nvidia shares after the chipmaker’s upbeat outlook.

Nvidia Corp jumped 7.2% after it forecast first-quarter revenue ahead of analysts’ estimates, reinforcing expectations of a rebound in chip demand and lifting the broader technology sector by 0.2%.

Meanwhile, the coronavirus epidemic in China showed no signs of easing, with new cases topping 5,000 on Friday.

A recent Reuters poll showed the world’s second-biggest economy will grow at its slowest pace since the financial crisis in the current quarter but the downturn will be short-lived if the outbreak is contained.

“The coronavirus still remains a concern but it appears for now at least that the assumption is it won’t impact the U.S. too much and that it will be something that can be controlled in China,” said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

Wall Street was on course for a second straight weekly gain after hitting a series of record highs on a largely positive fourth-quarter earnings season and confidence in the U.S. economy.

However, data released on Friday was not so upbeat. A Commerce Department retail sales report showed consumer spending likely slowed further in January, while separate data indicated industrial production fell more than expected last month.

At 13:15 a.m. ET, the Dow Jones Industrial Average slipped 0.28% to 29,341.05. The S&P 500 fell 0.09% to 3,371.06 and the Nasdaq Composite was down or 0.06% at 9,706.43.

U.S. financial markets are closed on Monday for President’s Day holiday.

With the fourth-quarter earnings season starting to wind down, about 77% of the 387 S&P 500 firms that have reported so far have topped earnings estimates, according

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