The US markets closed lower on Friday, ending the week with losses amid fears that collapsing oil prices might impact banks with exposure to highly-leveraged energy companies. The Dow Jones Industrial Average dropped by 2.1%, its largest one-day drop since September 1, to close out a historic week in which the Federal Reserve raised interest rates for the first time in nearly 10 years. Although the move was meant to represent a vote of confidence by the central bank in the US economy, the attempt to get the monetary policy back on normal footing. On the economy front, the index of US leading economic indicators increased in November, buoyed by more home construction permits and higher stock prices. The Conference Board’s measure of the economic outlook for the next three to six months rose 0.4 percent after climbing 0.6 percent in October. Five of the 10 indicators of the composite gauge advanced. They also included a favorable interest-rate spread and pickup in consumer goods orders. The LEI is comprised of 10 components including manufacturer' new orders, stock prices, and average weekly initial claims for unemployment insurance.
The Dow Jones Industrial Average lost 367.29 points or 2.10 percent to 17,128.55, the Nasdaq was down 79.47 points or 1.59 percent to 4,923.08 and the S&P 500 dropped 36.34 points or 1.78 percent to 2,005.55.
The Indian ADRs closed mixed; HDFC Bank was down 1.01%, Infosys was down 0.28% and Wipro was down by 0.07%. On the other hand, Tata Motors was up 0.21% and Dr. Reddy’s Lab was up by 0.04%.