NEW YORK – United States stocks plunged, capping the worst week for the S&P 500 Index since March, as the Trump administration pressed its trade war with China and the latest batch of economic data added to concern that growth has peaked. Oil rose after OPEC agreed to cut output.
The Dow Jones Industrial Average shed over 500 points Friday, bringing its decline in the abbreviated trading week to over 1,000. The S&P finished the week down 4.6 percent. The trade outlook appeared to take a negative turn after Huawei Technologies’s chief financial officer was charged with conspiracy and the U.S. alleged the company violated sanctions. The Federal Reserve’s Lael Brainard struck a hawkish tone in comments at a conference.
“What we think is going on is a repricing of growth,” said Ernie Cecilia, chief investment officer at Bryn Mawr Trust Co. “The bond market is essentially saying we don’t see the kind of growth that we’ve had. So what the market is doing is repricing stocks, particularly those that have performed extraordinarily well, to a lower growth rate.”
Nvidia and Advanced Micro Devise tumbled more than 6 percent as chipmakers cratered. Utilities were the only S&P 500 group to rise. Interest-rate futures put the probability of a Federal Reserve rate increase at its Dec. 18-19 meeting above 70 percent Netflix, Amazon and Alphabet sank at least 3 percent to lead losses among megacap tech shares.
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Stocks had opened higher after the November jobs report showed moderation in the labor market, giving succor to proponents for a slower pace of Fed interest-rate increases. Treasuries fluctuated on the data before settling higher as risk aversion increased.