Stocks drop 4% in week on trade worries
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.