U.S. Stocks Close Lower on Friday After Weak Economic Data
(MENAFN) The New York Stock Exchange closed mostly lower on Friday as weak economic data, including disappointing consumer sentiment, retail sales, and industrial production figures, weighed on markets. A downturn in chip stocks also contributed to the negative trend.
The Nasdaq fell 0.4%, or 87.69 points, to settle at 21,622.98, while the S&P 500 dropped 0.29%, or 18.74 points, to 6,449.8. In contrast, the Dow Jones inched up 0.08%, adding 34.86 points to close at 44,946.12.
The VIX Volatility Index, often referred to as the "fear index," rose by 1.75% to reach 15.09, signaling growing market unease.
The overall downturn followed a surprise dip in US consumer sentiment for August. According to a University of Michigan survey, sentiment fell to 58.6 points, down from 61.7 in July, driven largely by growing concerns over inflation. Short-term inflation expectations rose to 4.9% from 4.5% in July, while long-term inflation expectations climbed to 3.9% from 3.4%.
Additionally, Federal Reserve data revealed a 0.1% decline in industrial production for July, falling short of expectations. Meanwhile, retail trade saw a modest 0.5% increase in July, following a stronger 0.9% rise in June, but still below the anticipated 0.6% growth.
Investor attention was also drawn to US President Donald Trump's upcoming meeting with Russian President Vladimir Putin in Alaska. Trump reiterated on his flight to Alaska that he would announce new tariffs on semiconductor imports in the coming weeks, adding pressure to chip stocks.
On the corporate front, chip stocks were largely lower by the week's end. Applied Materials dropped 14%, while the VanEck Semiconductor ETF (SMH) lost 2% and Nvidia fell 0.86%. However, Intel bucked the trend, gaining 2.9% following reports that the Trump administration was negotiating a potential stake in the company.
Meanwhile, shares of UnitedHealth, a major health insurer, surged nearly 12% after Berkshire Hathaway disclosed a significant stake purchase in the company.
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