Stocks close out best quarter in 5 years on quiet note
Associated Press
NEW YORK — U.S. stocks ended back where they started Friday as the stock market wrapped up its best quarter in almost five years. Electric car maker Tesla plunged after federal regulators moved to oust CEO Elon Musk following his tweet last month saying that he was close to a deal to take Tesla private.
Health care companies did better than any part of the market during the third quarter and they continued to rise Friday, and technology companies rose as chipmakers also traded higher. Facebook said it discovered a security breach that affects almost 50 million accounts and its stock fell again, ending its worst quarterly run in six years.
Global banks fell and European stocks skidded after Italy’s new government announced a big increase in spending. Italy’s main stock index fell almost 4 percent as investors worried that the government’s plan will lead to a clash with European Union leaders who want Italy to reduce its debt level.
Through the third quarter, pain in other markets led to gains for U.S. stocks, and that was true again Friday.
The S&P 500 rose 7.2 percent, its biggest increase since the end of 2013.
One reason is that investors are worried about other regions, especially emerging markets.
The currencies of Turkey and Argentina dropped during the quarter and investors worried that their currency and economic problems would harm the rest of the world.