(Reuters) – U.S. stocks fell on Friday, with shares of technology, energy and industrial companies taking a hit from concerns about global growth after a batch of weak Chinese data and a slide in oil prices.
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 9, 2018. REUTERS/Andrew Kelly
As investors shunned growth stocks, the S&P technology index .SPLRCT fell 1.76 percent, led by Apple Inc’s (AAPL.O) 2.4 percent slide and semiconductor stocks .SOX tumbling 2.21 percent.
The S&P energy index .SPSY dropped 0.91 percent as U.S. crude prices LCOc1 entered “bear market” territory, falling more than 20 percent since early October due to concerns over rising global supply.
“A lot of investors look at oil prices as the general indicator of the global economy, so it being weak is not a good sign,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
Amid 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 Federal Reserve policymakers, as expected, left interest rates unchanged following a two-day meeting on Thursday, 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 percent in October – their fastest pace in six years and easily beating expectations of 0.2