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Oil slide, China worries jolt Wall Street


By Sruthi Shankar

(Reuters) - The 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 raised concerns about global growth.

The technology <.SPLRCT> fell 1.9 percent as dropped 2.4 percent and stocks <.SOX> tumbled 2.1 percent.

Shares of , which serves as a bellwether for global economic activity, fell 3.1 percent, while the <.SPSY> dropped 0.9 percent with U.S. crude prices entering "bear market" territory. [O/R]

"When you look overseas, there's not just concerns about a global slowdown, but a global recession that might be brewing," said Jerry Braakman, of Santa Ana, California-based

"When overseas markets slow down, U.S. 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 and Beijing, Chinese data showed fell for the fourth straight month in October on cooling domestic demand and manufacturing activity, while fell for a fourth consecutive month.

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

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

The latest data on U.S. 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 more than the expected 0.2 percent rise - fuelled by a jump in costs for and

"Markets are waiting to see how that (prices) will flow through to consumer prices and the personal consumption expenditure. is really going to be the canary in the coalmine for the Fed," said Cliff Hodge, at in Charlotte,

At 12:35 p.m. ET the <.DJI> was down 211.38 points, or 0.81 percent, at 25,979.84, the <.SPX> was down 29.24 points, or 1.04 percent, at 2,777.59 and the <.IXIC> was down 137.84 points, or 1.83 percent, at 7,393.04.

Ten of the 11 S&P sectors were lower, with slight gains seen in the defensive consumer staples <.SPLRCS>.

fell 8.2 percent to near 10-year lows at $8.35 after cut price target on the stock to $6 from $10.

was down 9.9 percent after the gave a dismal fourth-quarter forecast.

Dow-member rose 2 percent after the company reported better-than-expected results as its theme parks and Marvel movie "Ant-Man and the Wasp" attracted crowds.

Declining issues outnumbered advancers for a 2.82-to-1 ratio on the NYSE and a 3.28-to-1 ratio on the Nasdaq.

The S&P index recorded 27 new 52-week highs and six new lows, while the Nasdaq recorded 37 new highs and 82 new lows.

(Reporting by in Bengaluru; Editing by and Shounak Dasgupta)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, November 10 2018. 01:02 IST