Wall Street stocks suffer worst week in a decade

Economic worries sink Wall Street stocks, United States News & Top Stories

Economic worries sink Wall Street stocks, United States News & Top Stories

Wall Street fell in volatile trading on Friday, after a few failed attempts at a rally, led by a drop in technology and other high-growth sectors, while defensive stocks rose amid concerns of slowing growth and a looming government shutdown.

Three major indexes pare early gains, suffer heavy losses.

"That's definitely a weight on the market", said Shannon Saccocia, chief investment officer at Boston Private, of Navarro's comments.

Federal Reserve Bank president John Williams said on Friday that, despite the rise, the bank was ready to respond to fears about future rate hikes and "reassess and re-evaluate our views and our policy stance". "Part of that is when the Fed says something like they're re-looking at things, there's a concern that maybe the Fed knows something that we don't know".

Technology and communication services stocks bore the brunt of the sell-off, falling 3.0 percent and 3.1 percent, respectively.

The Nasdaq Composite Index confirmed on Friday it is in a bear market for the first time since 2008, underscoring fears that the longest bull run in history for US stocks could soon be over.

The markets are also reacting to turmoil in Washington, where the White House has threatened to reject a must-pass spending bill that doesn't include money for President Donald Trump's proposed border wall.

"Nasdaq is your more growth-oriented story, so the biggest stocks are driving the overall market because they're a bigger chunk of it", said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh.

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The industrial Dow Jones was down 1.81% on Friday and the tech-dominated Nasdaq fell by nearly 3% - its worst week since 2008. Facebook shares tumbled 5.4%, Amazon shares slid 4.8% and Netflix shares sank 5%.

Even with the drop since late August, Nasdaq is almost 400 percent above its March 2009 low, with a total return of more than 456 percent.

"The market continues to react to the possibility of a government shutdown, fear of a domestic and global slowdown and general displeasure about the direction of Fed policy", said Ryan Larson, head of US equity trading at RBC Global Asset Management in Chicago.

The benchmark for many index funds has fallen 17.5% since its September high.

For the second day in a row, more than 2,000 New York Stock Exchange and Nasdaq-listed stocks hit 52-week lows. The Nasdaq suffered a 3 per cent fall to 6,332.99, taking it more than 20 per cent off its record high in August. Trading volume is often high on "quadruple-witching" days.

Among Wall Street's advancers were shares of Nike Inc, which jumped 7.2 percent after the company's quarterly results beat Wall Street estimates.

That news helped drive shares higher overseas.

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