US stocks post 2nd straight weekly decline as S&P 500 gives up most Friday gains
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- Stocks ended Friday mixed as technology stocks led the market lower, causing the Nasdaq composite index to finish in the red. The Dow Jones industrial average and S&P 500 held onto gains.
- Friday’s close marked the second straight weekly decline for US stocks. The S&P 500 postesd back-to-back weekly losses for the first time since early March, when the COVID-19 pandemic was nearing its peak.
- West Texas Intermediate crude rose as much as 1.4%, to $37.82 per barrel.
- Spot gold slid 0.2% as the precious metal continues to consolidate within a tight $100 range of $1,900 to $2,000.
- Watch major indexes update live here.
US stocks ended Friday mixed as technology stocks continued to lead the market lower, erasing early-morning gains. The Nasdaq composite index finished the day lower, while the Dow Jones industrial average and S&P 500 managed to hold onto gains.
Better than expected earnings reports from Peloton and Oracle were not enough to stem the decline in tech shares.
Friday’s close marked the second straight weekly decline in US stocks for the first time since early March, when the COVID-19 pandemic was front and center in investors’ minds.
Here’s where US indexes sat as of the 4 p.m. ET market close on Friday:
- S&P 500: 3,340.97, up 0.1%
- Dow Jones industrial average: 27,665.64, up 0.5% (131 points)
- Nasdaq composite: 10,853.54, down 0.6%
Read more: Buy these 30 stocks that offer the best bargains for strong sales and earnings growth in a pricey market, Credit Suisse says
Goldman Sachs updated its third-quarter GDP forecast on Thursday to 35% annualized growth, prompted by a stronger-than-expected August jobs report. The US added 1.37 million jobs in August, more than an expected addition of 1.35 million jobs.
Bank of America also boosted its third-quarter GDP estimate on Friday from 15% to 27%. The firm cited better than expected retail sales and strength in the housing market as reasons for the estimate change.
Economists surveyed by Bloomberg expect third-quarter GDP expansion of 21%.
Read more: A senior portfolio manager at Morgan Stanley’s $665 billion investment-management business tells us why the tech-stock plunge isn’t a cue to abandon the sector – and where to find the biggest gains as the recovery resumes
Peloton initially surged as much as 12% before finishing the day down more than 4%. The fitness company reported its first quarterly profit on the back of increased spending on its bikes and treadmills during the COVID-19 pandemic. Oracle also posted a strong quarter of earnings growth, surpassing analyst expectations thanks to increased demand for its cloud services.
JPMorgan said it would form a private trading team to source and trade privately listed companies as more and more companies delay the IPO process and stay private for longer.
Read more: Buy these 16 tech stocks that are beaten down from the pandemic and now primed for explosive growth in the months ahead, Stifel says
Nikola extended its decline on Friday after the company responded to a short-seller report from Hindenburg Research. Additionally, short-seller Citron Research piled on the stock on Friday, calling it a “total fraud.”
Spot gold fell 0.2%, to $1,941.95 per ounce. The precious metal has remained in a narrow trading range of $1,900 to $2,000.
Oil traded mixed on Friday after its Thursday decline as investors digested reports of depressed demand due to the COVID-19 pandemic and of increased supply from US oil producers. West Texas Intermediate crude rose as much as 1.4%, to $37.82 per barrel. Brent crude, oil’s international standard, fell 1.7%, to $39.38 per barrel, at intraday lows.
Read more: Morgan Stanley says the stock market’s future is ‘unusually dependent’ on another stimulus package – and recommends 5 portfolio moves to make if Congress passes another round
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