Stocks fell Friday as investors wrap up a volatile week ahead of the Federal Reserve’s policy meeting.
The Dow Jones Industrials tumbled 288.87 points to close out Friday and the week at 34,618.24. At its lows, it completely wiped out Thursday’s 332-point rally.
The S&P 500 index sank 54.78 points, or 1.2%, to 4,450.32.
The NASDAQ index plunged 217.72 points, or 1.6%, to 13,708.33.
The Dow held onto a winning week. The S&P 500 and NASDAQ both closed out the week with losses.
Information technology was the worst-performing sector in the S&P 500, down nearly 2%. Adobe shares fell more than 4% even after the software firm posted better-than-expected quarterly results. Shares of Arm Holdings were lower one day after its successful public debut.
Auto stocks General Motors and Stellantis N.V. were higher Friday, while Ford Motor was about flat. Thousands of members of the United Auto Workers went on strike after failing to reach a deal with the automakers Thursday night.
Elsewhere, Lennar shares slid 3%. The home construction firm posted third-quarter results that beat on the top and bottom lines.
On the economic front, the University of Michigan’s consumer sentiment survey showed one-year inflation expectations dropped to 3.1% in
September, tied for the lowest since January 2021. Also, the five-year outlook fell to 2.7%, matching its lowest since December 2020.
Stocks are headed for a winning week, with the Dow on pace for a near-1% gain and its second positive week in three. The S&P has progressed 1.1%, and the NASDAQ has jumped about 1.2%, putting them on track for their third positive weeks in four.
Prices for the 10-year Treasury declined, raising yields to 4.33% from Thursday’s 4.29%. Treasury prices and yields move in opposite directions.
Oil prices strengthened 97 cents, or 1.1%, to $91.12 U.S. a barrel.
Gold prices shone brighter $11.20 to $1,944.00 U.S. an ounce.