United States stocks close lower as government shutdown looms

United States stocks close lower as government shutdown looms

The Dow Jones Industrial Average has lost more than 800 points since the Fed decision on Wednesday and is down over 1700 points the past 5 sessions.

The Dow Jones Industrial Average was down 414.23 points, or 1.81 per cent, to 22,445.37.

Investors fear a recession is coming, and barring huge gains during the upcoming holiday period, when trading is usually quiet, this will be the worst December for stocks since the 1930s.

Major indexes fell more than 1 percent in midday trading Thursday, bringing their losses over the previous six days to about 6 percent.

The benchmark S&P 500 index fell 2.3 percent. And the S&P 500's 7.1% weekly loss was the worst since August 2011.

The Nasdaq's fall reflects a sharp move by investors away from what had been the market's leaders - the so-called FAANG group of five favorite technology and internet stocks.

The S&P 500 is down 132.53 points, or 5.1 percent. The NASDAQ Composite briefly dipped into bear market territory on Thursday and is now down almost 20 percent from its recent high.

Political chaos from Brexit, a looming US government shutdown and the resignation of US Defense Secretary James Mattis are stoking fear, too.


The Nasdaq Composite Index .IXIC confirmed on Friday it is in a bear market for the first time since 2008, underscoring fears that the longest bull run in history for US stocks could soon be over.

And the Federal Reserve added to those concerns this week by signaling that its rate-increase plan will continue into 2019 despite downgrading its economic growth forecast.

After steady gains through the spring and summer, stocks have slumped in the fall as investors worry that global economic growth is cooling off.

For the week, the S&P 500 fell 7.05 percent, the Dow dropped 6.87 percent, and the Nasdaq declined 8.36 percent.

Oil prices continued to retreat. USA crude fell 1 percent to $45.41 a barrel, while Brent fell 1.5 percent to $53.52.

The technology index sank 1.54 percent, while communication services, which houses high-growth names such as Facebook Inc and Alphabet Inc, dropped 2.2 percent.

Microsoft and Amazon each fell 3.4 percent.

Benchmark 10-year Treasury notes last rose 2/32 in price to yield 2.783 percent, from 2.789 percent late on Thursday. The yield on the 10-year Treasury finished today nearly a half percent lower than its recent October peak.

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