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Oil slide, China worries send Wall Street tumbling

Reuters  |  NEW YORK 

By Sinead Carew

NEW YORK (Reuters) - Wall Street's three stock indexes lost ground on Friday, after a week of recovery from the October sell-off, as prices fell further and more evidence of a slowing Chinese was reported.

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

The formally imposed punitive sanctions on this week, but granted eight countries temporary waivers allowing them to keep buying from the Islamic Republic.

"Oil is spooking the market. If are going to go lower that's another sign that the global is going to slow its growth," said Chris Zaccarelli, at Independent Advisor Alliance in Charlotte,

The <.DJI> fell 201.92 points, or 0.77 percent, to 25,989.3, the <.SPX> lost 25.82 points, or 0.92 percent, to 2,781.01 and the <.IXIC> dropped 123.98 points, or 1.65 percent, to 7,406.90.

The S&P dropped 0.4 percent after falling 2.2 percent in the previous day's session when U.S. crude prices 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, at in

Investors appeared unwilling to take on risk, sending the S&P down 1.7 percent as dropped 1.9 percent and stocks <.SOX> tumbled 1.9 percent.

Eight of the 11 S&P sectors ended the day lower.

The consumer staples index <.SPLRCS> was the biggest gainer with a 0.5 percent rise while other defensive sectors such as and real estate <.SPLRCR> eked out small gains.

Against the backdrop of the trade policy dispute between the and Beijing, Chinese data showed inflation fell for the fourth straight month in October on cooling domestic demand and manufacturing activity, while fell for a fourth consecutive month.

The Chinese data sent global stocks into a tailspin and put pressure on trade and commodity sensitive sectors. The U.S. industrials sector <.SPLRCI> fell 1.0 percent and materials <.SPLRCM> dropped more than 1.4 percent. U.S. Federal Reserve policymakers left interest rates unchanged on Thursday, as expected and its policy statement signalled more rate rises ahead even as it noted that business investment had moderated.

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

Shares in tobacco companies fell after an said that the would issue a ban on the sale of fruit and candy flavoured electronic cigarettes in convenience stores and

ended 2.98 percent lower while U.S. shared fell 4.2 percent.

Declining issues outnumbered advancing ones on the NYSE by a 2.22-to-1 ratio; on Nasdaq, a 2.95-to-1 ratio favoured decliners.

The benchmark index posted 29 new 52-week highs and 8 new lows; the recorded 46 new highs and 113 new lows.

On U.S. exchanges 7.93 billion shares changed hands compared with the 8.39 billion average from the last 20 sessions.

(Reporting by in Bengaluru; Editing by Clive McKeef)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sat, November 10 2018. 03:48 IST