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Wall Street drops on China concerns, oil slide

Reuters 

By Sruthi Shankar

(Reuters) - U.S. stocks fell on Friday, with shares of technology, and industrial companies taking a hit from concerns about global growth after a batch of weak Chinese data and a slide in prices.

As investors shunned growth stocks, the fell 1.76 percent, led by Apple Inc's 2.4 percent slide and stocks tumbling 2.21 percent.

The index dropped 0.91 percent as U.S. crude prices entered "bear market" territory, falling more than 20 percent since early October due to concerns over rising global supply. [O/R]

"A lot of investors look at prices as the general indicator of the global economy, so it being weak is not a good sign," said Scott Brown, at in St. Petersburg,

Amid a bitter trade 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 report sent global stocks into a tailspin, with trade-sensitive stocks such as and sliding 0.8 percent and 3.6 percent, respectively.

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. 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 percent - fueled by a jump in costs for and

"It's a classic risk-off driven by the fears of Fed, and oil," said Cliff Hodge, at in Charlotte,

At 11:21 a.m. EDT the was down 188.63 points, or 0.72 percent, at 26,002.59, the 500 was down 25.47 points, or 0.91 percent, at 2,781.36 and the was down 120.20 points, or 1.60 percent, at 7,410.68.

Eight of the 11 S&P sectors were lower, with slight gains seen in the defensive real estate, consumer staples and

dived 12 percent after the gave a dismal fourth-quarter forecast.

Dow-member rose 2.8 percent after the company reported better-than-expected results as its theme parks and Marvel movie "Ant-Man and the Wasp" attracted crowd.

Declining issues outnumbered advancers for a 2.40-to-1 ratio on the NYSE and a 2.77-to-1 ratio on the Nasdaq.

The S&P index recorded 25 new 52-week highs and six new lows, while the Nasdaq recorded 32 new highs and 67 new lows.

(Reporting by in Bengaluru; Editing by Arun Koyyur)

(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: Fri, November 09 2018. 21:59 IST
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