Stocks drop 4% in week on trade wor­ries

Sun Sentinel Broward Edition - - The Weather - By Alex Veiga

Wall Street capped a tur­bu­lent week of trad­ing Fri­day with the big­gest weekly loss since March as traders fret over ris­ing trade ten­sions be­tween Wash­ing­ton and Bei­jing and sig­nals of slower eco­nomic growth.

The lat­est wave of sell­ing erased more than 550 points from the Dow Jones In­dus­trial Av­er­age, bring­ing its three-day loss to more than 1,400. For the week, ma­jor in­dexes are down more than 4 per­cent.

Wor­ries that the testy U.S.-China trade dis­pute and higher in­ter­est rates will slow the econ­omy has made in­vestors un­easy, lead­ing to volatile swings in the mar­ket from one day to the next.

On Mon­day, news that the U.S. and China had agreed to a 90-day truce in their es­ca­lat­ing trade con­flict drove stocks sharply higher. The next day, as doubts mounted over the like­li­hood of a swift res­o­lu­tion to the trade dis­pute, stocks sank. On Fri­day, an­other early rally faded into an­other sharp drop.

The S&P 500 in­dex fell 62.87 points, or 2.3 per­cent, to 2,633.08. The in­dex has ended lower three out of the last four weeks. The Dow dropped 558.72 points, or 2.2 per­cent, to 24,388.95.

The Nas­daq com­pos­ite slid 219.01 points, or 3 per­cent, to 6,969.25. The Rus­sell 2000 in­dex of small­com­pany stocks gave up 29.32 points, or 2 per­cent, to 1,448.09.

The S&P 500 and Dow are now in the red for the year again. The Nas­daq was hold­ing on to a mod­est gain.

Oil prices rose af­ter OPEC coun­tries agreed to re­duce global pro­duc­tion by 1.2 mil­lion bar­rels a day for six months, begin­ning in Jan­uary.


Trader Michael Mi­lano, right, works on the floor of the New York Stock Ex­change. Eq­ui­ties shed 4% of value in a week.

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