Fears of Global Growth Slam Stocks, Dow Drops by More Than 550

Cornelia Mascio
Dicembre 9, 2018

Major US stock indices slumped more than 2% on closing to conclude a bruising week for markets which have been rattled by the US-China trade clash.

The Dow Jones Industrial Average fell 558.72 points, or 2.24 percent, to 24,388.95, the S&P 500 lost 62.87 points, or 2.33 percent, to 2633.08 and the Nasdaq Composite dropped 219.01 points, or 3.05 percent, to 6969.25.

The S&P 500 index fell 20 points, or 0.8 per cent, to 2,676 as of 10:18 a.m.

Stocks dove again on Wall Street Friday, capping a turbulent week of trading that gave the benchmark S&P 500 index its worst weekly loss since March.

Oil rallied after OPEC broke an impasse over production curbs, agreeing on a larger-than-expected cut with allies after two days of fractious negotiations in Vienna. Brent crude, used to price global oils, gained 4.7 per cent to $62.87 a barrel in London.

For the week, the major indexes were all down more than 3 percent.

Financial shares, which are sensitive to bond yield swings, fell 1.4 percent. EOG Resources gained 2.7 percent to $104.87.

In small caps, the Russell 2000 closed at 1,450.12 for a loss of -27.29 points or -1.85%.

TECH SLIDE: A sell-off in technology stocks weighed on the market. The Nasdaq dropped 117 points, or 1.7 percent, to 7,040.

The Dow is down 330.27 points, or 1.3 percent.

The fall was a reversal from earlier in the day, when stocks were higher on United States labour data that showed employers hired fewer workers than expected in November. The Dow dropped 2.2 percent. The cartel and its partners agreed to remove 1.2 million barrels a day from the market, with OPEC itself shouldering 800,000 barrels of the burden.

Tobacco company Altria, which makes Marlboro cigarettes, rose 1.3 percent after announcing a $2.4 billion investment in Cronos Group, a Canadian medical and recreational marijuana company. The unemployment rate remained at 3.7 percent, almost a five-decade low, for the third straight month.

The Labor Department said US employers added 155,000 jobs in November, a slowdown from recent months but enough to suggest that the economy is expanding at a solid pace despite sharp gyrations in the stock market.

The drop continued Thursday - the US market was closed on Wednesday - as bond yields and oil prices both slid.

The S&P 500 erased virtually all of its gains from a week earlier, when the benchmark index notched its biggest weekly rise in seven years. Britain's FTSE 100 jumped 1.1 percent. But shares of Chevron, ExxonMobil and others also finished the session in the red.

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