U.S. stocks traded about 2 percent lower on Friday, extending a recent rout, as concerns about slowing global growth continued to pressure investor sentiment.
U.S. stocks traded about 2 percent lower on Friday, extending a recent rout, as concerns about slowing global growth continued to pressure investor sentiment. ( Tweet This )
“Right now there is a feeling of fear in the marketplace and all news is interpreted negatively and it’s interpreted indiscriminately,” said Tom Digenan, head of U.S. equities as UBS Global Asset Management.
The major averages trimmed losses in afternoon trade but remained near correction territory and on track for their worst week since 2011. Earlier, the averages briefly attempted to halve losses in mid-morning trade.
“I think uncertainty about China (and) general negativity is weighing on the market. There’s a lack of positive economic news to motivate buyers,” said David Kelly, chief global strategist at JPMorgan Funds. He noted “there’s nothing particularly negative in the U.S. economic outlook.”
Oil reversed Thursday’s late gains to trade lower in early afternoon trade, with crude oil falling below $40 a barrel to $39.86 for the first time since 2009.
Crude oil futures for October delivery fell $1.30 to $40.02 a barrel on the New York Mercantile Exchange as of 1:44 p.m. Gold futures gained $6.40 to $1,159.60 an ounce.
“As earnings season starts to wind down the market starts to focus on the macro,” said David Lafferty, chief market strategist at Natixis Global Asset Management.
“We’ve probably had a bit of a healthy transition here,” he said, noting how bad news is mostly interpreted as bad news rather than good news that keeps the Fed at bay.
In addition to concerns over slowing global growth, analysts also noted some uncertainty over the timing of a rate hike.