NEW YORK (Reuters) – Wall Street’s three major stock indexes lost ground on Friday, after a week of recovery from the October sell-off, as oil prices fell further and more evidence of a slowing Chinese economy was reported.
Oil prices fell nearly 1.0 percent on Friday, and have now seen the longest stretch of daily declines since 1984, on rising global supply and evidence of a slowing world economy.
The United States formally imposed punitive sanctions on Iran this week, but granted eight countries temporary waivers allowing them to keep buying oil from the Islamic Republic.
“Oil is spooking the market. If oil prices are going to go lower that’s another sign that the global economy is going to slow its growth,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.
The Dow Jones Industrial Average .DJI fell 201.92 points, or 0.77 percent, to 25,989.3, the S&P 500 .SPX lost 25.82 points, or 0.92 percent, to 2,781.01 and the Nasdaq Composite .IXIC dropped 123.98 points, or 1.65 percent, to 7,406.90.
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 9, 2018. REUTERS/Andrew Kelly
The S&P energy index .SPSY dropped 0.4 percent after falling 2.2 percent in the previous day’s session when U.S. crude prices LCOc1 confirmed a bear market by falling 20 percent from their most recent high. [O/R]
“I think we’re going to go lower than the October low. Economic growth is slowing but it won’t slow enough to stop the Fed from hiking,” said Jim Paulsen, chief investment strategist at the Leuthold Group in Minneapolis.
Investors appeared unwilling to take on risk, sending the S&P technology index .SPLRCT down 1.7 percent as Apple Inc (AAPL.O) dropped 1.9 percent and semiconductor stocks .SOX tumbled 1.9