US stocks sank on Friday as major indexes failed to build on Thursday’s rally and ended weeks of losses.
The S&P 500 (^GSPC) fell 1.2%, while the Dow Jones Industrial Average (^DJI) fell 0.8%, or 300 points. Tech-Heavy Nasdaq Composite (^IXIC) Down 1.6%, leading the way down.
The move on Friday came as China reported that its economy grew at full steam last month, easing concerns about the world’s second-largest economy. The United Auto Workers union has officially launched a historic strike at selected Big Three auto plants.
Wall Street benchmarks rallied on Thursday after retail sales and wholesale inflation rose more than expected in August. Signs of resilience in US consumers and continued price pressures will likely lead to further Fed rate hikes. 97% bet the central bank will meet next week, keeping interest rates at current levels in committee. CME Group’s FedWatch tool.
New data on Friday painted a better picture for the Fed, with short-term consumer inflation falling to a level not seen in more than two years, according to a University of Michigan consumer survey.
The recent rally in oil prices has fueled inflation, which has had a significant impact on stocks. On Friday, WTI crude (CL=F) and Brent (BZ=F) futures held on to 2023 highs hit on Thursday.
In individual stock moves, all eyes continued to be on British chipmaker Arm ( ARM ), which jumped nearly 25% in the public markets on Thursday. The arm stock gave up early gains to end more than 4% lower.
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