Stocks End Week Down 7%

Stocks End Week Down 7%

Another day of big losses is leaving the US stock market with its worst weekly drop in more than seven years.

The benchmark S&P 500 index is now nearly 16 percent below the peak it reached in late September. Both the Dow and the S&P are on pace for their worst December since the Great Depression in 1931. Stocks are cheap, presenting buying opportunities for smart investors willing to take on a bit of risk.

Federal Reserve Board Chairman Jerome Powell leaves after his news conference after a Federal Open Market Committee meeting in Washington, U.S., December 19, 2018. And the Federal Reserve added to those concerns this week by signaling that its rate-increase plan will continue into 2019 despite downgrading its economic growth forecast.

No sector of the market has been spared.

Stocks usually end the year with a flourish, and December is usually the best month of the year for the market. Amazon, Facebook, Apple, Netflix, and Google's parent company, Alphabet, have seen their market values fall by hundreds of billions of dollars.

"That's definitely a weight on the market", said Shannon Saccocia, chief investment officer at Boston Private, of Navarro's comments. The Nasdaq plunged 8.4% on the week, its worst since November 2008. And there are increasing signs the global economy is slowing, too. It's widely expected to slow down, but traders are concerned the cooling might be worse than they previously believed.

The S&P 500 fell 50 points, or 2.1 percent, to 2,416.

A correction is Wall Street's term for an index like the S&P 500, the Dow Jones Industrial Average, or even an individual stock, that's fallen 10 per cent or more from a recent high. The Nasdaq tumbled 195.41 points to 6,332.99, or 21.9 per cent below its peak of 8,109.69 on August 29.

European markets rose slightly and Asian markets were mixed.

Selling in the S&P 500 Index was dominated by underperforming technology stocks.

On Friday the price of US crude slipped 0.6 percent to $45.59 a barrel in NY.

-Wholesale gasoline was little changed at $1.32 a gallon.

The stock markets in France, Germany, Britain, Italy, Portugal, Spain, Tokyo and Hong Kong also fell.

After early gains, bond prices headed lower. The VIX Volatility Index was higher at 28.38 for a gain of 2.80 points or 10.95%.

Brent Crude Oil prices also dropped to $46.16 after falling 2.5 percent.

For the week, the Dow lost 1,655 points, or 6.9%. Copper lost 0.8 percent to $2.67 a pound.

Stocks initially rallied in the early going Friday, especially after New York Fed President John Williams told reporters the central bank will listen to what the market says and consider re-evaluating its outlook for two rate hikes.

The British pound rose to $1.2671 from $1.2621.

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