Markets ended sharply lower on Friday after President Donald Trump said that the United States was ready to move ahead with tariffs on an additional $267 billion worth of Chinese goods. Also, Apple said that tariffs could affect some of its products. These developments reignited trade war fears resulting in huge selloffs, led by tech stocks. Also, the U.S. Labor Department’s employment report showed robust job growth, reflecting strength in the economy. However, it also raised concerns about inflation and rate hikes. Friday also marked the fourth straight day of decline for the S&P 500 and Nasdaq.
The Dow Jones Industrial Average (DJI) shed 0.3%, to close at 25,916.54. The S&P 500 declined 0.2% to close at 2,871.68. The Nasdaq Composite Index closed at 7,902.54, declining 0.3%. A total of 6.25 billion shares were traded on Friday, higher than the last 20-session average of 6.2 billion shares. Decliners outnumbered advancers on the NYSE by a 2.21-to-1 ratio. On Nasdaq, a 1.24-to-1 ratio favored declining issues.
How did the Benchmark Perform?
The Dow slid 79.33 points, after recovering from its intraday low. Also, the Dow snapped its three-week winning streak. Shares of Intel Corporation (INTC - Free Report) declined 1.7%. The S&P 500 lost 6.37 points, with utilities and real estate taking a hit. The Utilities Select Sector SPDR (XLU) and Real Estate Select Sector SPDR (XLRE) declined 1.2% and 1.3%, respectively.
The tech heavy Nasdaq shed 20.18 points, led by huge selloff in tech stocks. Shares of Apple, Inc. (AAPL - Free Report) declined 0.8%. Shares of Amazon, Inc. (AMZN - Free Report) and Alphabet, Inc. (GOOGL - Free Report) fell 0.3% and 0.5%, respectively. Also, the Nasdaq posted its fourth straight daily decline, its first since April. Amazon has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Trade War Fears Rattle Markets
Trade war fears returned once again, raising panic among investors. On Friday, speaking from Air Force One, Trump said the United States is ready to slap tariffs on an additional $267 billion worth of Chinese goods. Trump’s comments follow the deadline for comments on tariffs on $200 billion in Chinese goods which ended on Thursday midnight.
Investors were focusing on developments surrounding international trade. They have also been closely monitoring the talks between the United States and Canada. Moreover, Apple too indicated that some of its products could get affected because of tariffs. This made investors even more jittery, leading to huge selloffs in tech stocks.
Investor Confidence Dented Despite Strong Economic Data
On Friday, the Labor Department released a jobs report that showed that 201,000 were added in August, higher than analysts’ expectations. The unemployment rate remained steady at 3.9%. This definitely reflects the strength in the economy.
However, it also raised concerns related to inflation and the Fed’s plans of increasing interest rates. This somewhat dented investors’ confidence, resulting in markets opening lower on Friday.
It was a volatile week for markets, marking one of the worst starts to September, with tech stocks suffering the most. Trade war fears coupled continued to rattle markets throughout the week. Moreover, large-cap tech stocks, especially Internet-based stocks sharply declined over the week on concerns of increased regulation on social media and Internet-based companies in order to check spreading misinformation and intervene in U.S. elections.
For the week, the Nasdaq declined 2.55%, recording its biggest weekly percentage decline since March end. The S&P 500 and the Dow declined 1% and 0.2%, respectively. The S&P 500 registered its biggest percentage decline since late June.
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Chevron Emerges Victorious in Ecuador Pollution Case
Chevron Corporation (CVX - Free Report) is breathing a sigh of relief, as an international tribunal ruled in favor of the integrated oil giant regarding a pollution-related case in Ecuador (Read More).
Thermo Fisher to Acquire BD's Advanced Bioprocessing Unit
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