Extending their previous session’s losses, the US markets settled lower on Friday with cut of around a percent each, due to a continued slump by technology stocks, with tech giant Apple showing a significant drop. Shares of Apple, which have been a key driver of the markets in most recent sessions, tumbled by 3.2 percent to their lowest closing level in well over a month. Big-name tech companies like Google parent Alphabet, Amazon, and Microsoft also posted notable losses. Traders also continued to express renewed concerns about the economic outlook following the Federal Reserve's monetary policy announcement on Wednesday. While the Fed indicated it plans to leave interest rates at near-zero levels for years to come, traders seem skeptical that will be enough to support the economy.
Recent economic data suggests the rebound from the lockdown-induced economic collapse may be plateauing, raising concerns about the possibility of a double-dip. A report released by the Conference Board showed a continued increase by its reading on leading US economic indicators in the month of August, although the pace of growth slowed compared to recent months. The Conference Board said its leading economic index jumped by 1.2 percent in August after surging up by 2.0 percent in July and spiking by 3.1 percent in June. Street had expected the index to increase by 1.3 percent. Meanwhile, a separate report from the University of Michigan showed a much bigger than expected improvement in consumer sentiment in the month of September.
Dow Jones Industrial Average dropped 244.56 points or 0.88 percent to 27,657.42, Nasdaq fell 117 points or 1.07 percent 10,793.28 and S&P 500 was down by 37.54 points or 1.12 percent to 3,319.47.
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