US STOCKS-Oil slide, China worries jolt Wall Street

By Sruthi Shankar

Nov 9 (Reuters) – The S&P 500 fell more than 1 percent on Friday, with shares of large technology, industrial and material companies taking a hit as weak Chinese data and a slide in oil prices raised concerns about global growth.

The S&P technology index fell 1.9 percent as Apple Inc dropped 2.4 percent and semiconductor stocks tumbled 2.1 percent.

Shares of Caterpillar, which serves as a bellwether for global economic activity, fell 3.1 percent, while the S&P energy index dropped 0.9 percent with U.S. crude prices entering “bear market” territory.

“When you look overseas, there’s not just concerns about a global slowdown, but a global recession that might be brewing,” said Jerry Braakman, chief investment officer of Santa Ana, California-based First American Trust.

“When overseas markets slow down, U.S. economy might be okay, but global corporations, with currency translation and revenue growth challenges, get hit.”

In the backdrop of a bitter trade dispute between the Washington and Beijing, Chinese data showed producer inflation fell for the fourth straight month in October on cooling domestic demand and manufacturing activity, while car sales fell for a fourth consecutive month.

The report sent global stocks into a tailspin, with trade and commodity sensitive sectors such industrials and materials falling more than 1 percent.

The Federal Reserve policymakers left interest rates unchanged on Thursday, as expected, and their policy statement signaled more rate hikes ahead, with the fourth hike this year expected in December.

The latest data on U.S. producer prices did little to ease worries about rising interest rates, which have hampered gains in stocks this year.

Prices paid by producers rose 0.6

Read More Here...

Bookmark the permalink.