• The Dow Jones recorded the largest weekly loss in 5 months
• The Nasdaq Composite records the largest weekly loss in nearly 3 months
• The Nasdaq Composite closed below the 200-day moving average
• The personal consumption expenditures index rose 0.6% in January
• Boeing stock records its lowest close in nearly two months
US indices ended sharply lower in the Friday session, recording their largest weekly loss since the beginning of this year.
This decline comes with the increase of investors’ fears of a greater increase in interest rates by the US Federal Reserve following the release of consumer spending data.
Friday’s data showed that the personal consumption expenditures price index, the Fed’s preferred measure of inflation, rose 0.6% last month following rising just 0.2% in December.
Consumer spending, which accounts for more than two-thirds of US economic activity, also jumped 1.8% last month, beating expectations for a 1.3% rise.
S&P 500 and Dow Jones:
The S&P 500 index declined by regarding 1% in the Friday session, to close at 3970 points, amid a decline in most of the major sectors, led by technology and consumer.
The telecommunications sector also declined for the sixth session in a row, which is the longest daily wave of decline since August 2022.
The Dow Jones index fell by more than 300 points in the Friday session, to close below 33,000 points for the first time in two months.
Over the course of the week, the Dow Jones lost regarding 3% of its value, recording the largest weekly loss in 5 months.
Nasdaq Composite Index:
The Nasdaq Composite Index fell by 1.7%, to lose all of its February gains, and to close below the 200-day moving average.
Over the course of the week, the Nasdaq fell more than 3%, posting its biggest weekly loss in 3 months.
Boeing share:
Boeing stock fell by 5%, its lowest close in regarding two months, following it opened at a negative gap in the Friday session.
The declines came following the Federal Aviation Administration said the planemaker had temporarily halted deliveries of its 787 Dreamliner jets.