Wall Street ends in decline after a week of decline - BBC News

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, United States, December 7, 2018.Author's image
Reuters

US equity indices declined by more than 2% on Friday, while uncertainty continued to ruin financial markets.

The decline has extended losses since the start of the week and has affected almost all sectors, led by technology companies.

The Dow Jones index and the S & P 500 index both lost about 2.3%, while the Nasdaq fell more than 3%.

The falls occurred with charges of charges against a senior executive of Huawei, while a weaker than expected job renewed concerns about economic growth.

US markets performed better than expected in 2018, reaching historic highs at the start of the year.

But investors expect growth in the United States and the world to slow down in 2019, a deceleration compounded by new commercial rates and rising interest rates.

The group of worries threw the markets into turmoil.

On Friday, the slowdown in monthly job growth raised questions about the path to interest rates, while the hearing for Huawei's chief financial officer further allayed concerns about trade tensions between the United States and China.

Friday's falls left all three indices down more than 4% for the week.

The Dow and the S & P ended lower than they were at the start of 2018, while the Nasdaq was approximately flat.

Intel and Micron, both in business with Huawei, were among the biggest losers, down 4.4% and almost 6.3%, respectively.

Previously, movements on Asian markets were weaker, while European equities largely recovered after Thursday's sharp decline. In London, the FTSE 100 closed the 1.1%.

While some analysts have argued that the recent fall in US equity prices is simply a necessary correction from previous highs, the researchers at Capital Economics have said they expect to see the turmoil this week continue.

"In particular, although both the S & P 500 and US Treasury yields have started to drop a little earlier than we had anticipated previously, we still suspect that both should go down again in 2019," they said.

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