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U.S. stocks ended sharply lower on Friday, with the Dow recording its fifth straight day of losses, as investors feared that the economic recovery might slow down due to the surging delta variant cases. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.8% or 271.66 points to end at 34,607.72 points.
The S&P 500 declined 0.8% or 34.7 points to close at 4,458.58 points. Utility and real estate stocks were the worst performers.
The Utilities Select Sector SPDR (XLU) declined 1.4%, while the Real Estate Select Sector SPDR (XLK) fell 1.3%. All the 11 sectors of the benchmark index closed in negative territory.
The fear-gauge CBOE Volatility Index (VIX) was up 11.44% to 20.95. A total of 10 billion shares were traded on Friday, higher than the last 20-session average of 9.2 billion. Decliners outnumbered advancers on the NYSE by a 1.84-to-1 ratio. On Nasdaq, a 1.88-to-1 ratio favored declining issues.
Surging New COVID-19 Cases Raise Concerns
Investors have been worrying about the rising cases of the delta variant of the coronavirus as that might once again slow the economic recovery. The United States is averaging around 150,000 new cases of Covid-19 per day for the past few weeks, which has been a cause of concern. Moreover, despite the massive vaccination drive only 53% of the total population has so far received both the doses of the vaccine. This is a low lower than many European countries.
The worries have been lingering for quite some time that has been taking a toll on stocks. Friday was no different, which saw stocks tumbling once again, ending the week in red.
Friday’s declined came despite President Joe Biden announcing new vaccine mandates on Thursday. Biden made vaccination compulsory for both executive-branch employees as well as federal contractors with no test alternative. However, that didn’t help much to boost investors’ confidence.
Apple Drags Dow Down
On Friday, Apple, Inc. (AAPL - Free Report) turned out to be the biggest laggard, dragging down the blue-chip index after a court ruling that went against its App Store rules. Apple’s shares fell 3.3% after a federal judge issued an injunction in the Epic Games, Inc. case where in the iPhone maker can no longer force app developers to use its payment gateway, bypassing 15% to 30% commission fee.
Besides, investors also are trying to gauge the possible time when the Fed decides to reduce its monthly asset purchase program of $120 billion in Treasurys and mortgage-backed securities. This also somewhat weighed on the markets. However, investors need to wait till Sep 21-22for the Federal Open Market Committee to get a clearer picture about its plans of tapering its monthly asset purchases.
Economic Data
Economic data released on Friday showed that U.S. producer-price index rose a solid 0.7% in August, beating forecasts of a 0.6% rise. Overall producer prices jumped 8.3% in August on a year-over-year basis. This is also the highest gain in 11 years.
Weekly Roundup
For the week, the Dow declined 2.2%, recording its second straight week of losses. The S&P 500 declined 1.7% for the week. The index also recorded its longest losing streak since Feb 22, when the market ended in the red for five consecutive days.
The Nasdaq also ended the week in negative territory, losing 1.6%. This was also its largest percentage weekly decline since Jul 16.
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Stock Market News for Sep 13, 2021
U.S. stocks ended sharply lower on Friday, with the Dow recording its fifth straight day of losses, as investors feared that the economic recovery might slow down due to the surging delta variant cases. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.8% or 271.66 points to end at 34,607.72 points.
The S&P 500 declined 0.8% or 34.7 points to close at 4,458.58 points. Utility and real estate stocks were the worst performers.
The Utilities Select Sector SPDR (XLU) declined 1.4%, while the Real Estate Select Sector SPDR (XLK) fell 1.3%. All the 11 sectors of the benchmark index closed in negative territory.
The tech-heavy Nasdaq slid 0.9% or 132.76 points to end at 15,115.49 points. Shares of Amazon.com, Inc. (AMZN - Free Report) and Alphabet, Inc. (GOOGL - Free Report) declined 0.4% and 1.9%, respectively. Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was up 11.44% to 20.95. A total of 10 billion shares were traded on Friday, higher than the last 20-session average of 9.2 billion. Decliners outnumbered advancers on the NYSE by a 1.84-to-1 ratio. On Nasdaq, a 1.88-to-1 ratio favored declining issues.
Surging New COVID-19 Cases Raise Concerns
Investors have been worrying about the rising cases of the delta variant of the coronavirus as that might once again slow the economic recovery. The United States is averaging around 150,000 new cases of Covid-19 per day for the past few weeks, which has been a cause of concern. Moreover, despite the massive vaccination drive only 53% of the total population has so far received both the doses of the vaccine. This is a low lower than many European countries.
The worries have been lingering for quite some time that has been taking a toll on stocks. Friday was no different, which saw stocks tumbling once again, ending the week in red.
Friday’s declined came despite President Joe Biden announcing new vaccine mandates on Thursday. Biden made vaccination compulsory for both executive-branch employees as well as federal contractors with no test alternative. However, that didn’t help much to boost investors’ confidence.
Apple Drags Dow Down
On Friday, Apple, Inc. (AAPL - Free Report) turned out to be the biggest laggard, dragging down the blue-chip index after a court ruling that went against its App Store rules. Apple’s shares fell 3.3% after a federal judge issued an injunction in the Epic Games, Inc. case where in the iPhone maker can no longer force app developers to use its payment gateway, bypassing 15% to 30% commission fee.
Besides, investors also are trying to gauge the possible time when the Fed decides to reduce its monthly asset purchase program of $120 billion in Treasurys and mortgage-backed securities. This also somewhat weighed on the markets. However, investors need to wait till Sep 21-22for the Federal Open Market Committee to get a clearer picture about its plans of tapering its monthly asset purchases.
Economic Data
Economic data released on Friday showed that U.S. producer-price index rose a solid 0.7% in August, beating forecasts of a 0.6% rise. Overall producer prices jumped 8.3% in August on a year-over-year basis. This is also the highest gain in 11 years.
Weekly Roundup
For the week, the Dow declined 2.2%, recording its second straight week of losses. The S&P 500 declined 1.7% for the week. The index also recorded its longest losing streak since Feb 22, when the market ended in the red for five consecutive days.
The Nasdaq also ended the week in negative territory, losing 1.6%. This was also its largest percentage weekly decline since Jul 16.