U.S. stocks fell, sending the Standard & Poorâ€™s 500 Index to its biggest monthly decline in a year, as weaker-than-forecast economic growth overshadowed a rally in energy shares sparked by a surge in the price of crude.
The S&P 500 slid 1.3 percent to 1,995.33 at 4 p.m. in New York, extending its monthly loss to 3.1 percent. The Dow Jones Industrial Average dropped 245.77 points, or 1.4 percent, to 17,171.08. Energy shares gained 0.7 percent as U.S. oil surged more than 8 percent. Amazon.com Inc. and Biogen Idec Inc. soared at least 10 percent after reporting earnings.
Equities tumbled amid concern over economies in Europe and Russia as data showed slower growth in America. The U.S. economy expanded at a slower pace than forecast in the fourth quarter as cooling business investment, a slump in government outlays and a widening trade gap took some of the luster off the biggest gain in consumer spending in almost nine years.
Source : Bloomberg
U.S. stocks fell, with the Standard & Poorâ€™s 500 Index heading for its biggest monthly decline in a year, amid concern over economies in Europe and Russia as data showed slower growth in America.
The S&P 500 slid 0.6 percent to 2,009 at 1:08 p.m. in New York. The gauge is down 2.4 percent for the month, the biggest drop since January 2014. The Dow Jones Industrial Average fell 113.58 points, or 0.7 percent, to 17,303.27 on Friday as Chevron Corp. slashed its drilling budget. The Nasdaq 100 Index rose 0.2 percent as Amazon.com Inc. and Google Inc. surged.
Stocks fell early on Friday as Russia unexpectedly cut interest rates and prices in Europe plunged at a pace last seen in the depths of the recession in 2009. The U.S. economy expanded at a slower pace than forecast in the fourth quarter as cooling business investment, a slump in government outlays and a widening trade gap took some of the luster off the biggest gain in consumer spending in almost nine years.
Gross domestic product grew at a 2.6 percent annualized rate after a 5 percent gain in the third quarter that was the fastest since 2003, Commerce Department figures showed Thursday in Washington. The median forecast of 85 economists surveyed by Bloomberg called for a 3 percent advance. Consumer spending, which accounts for almost 70 percent of the economy, climbed 4.3 percent, more than projected.
A separate report showed American consumer confidence reached an 11-year high in January as a strengthening labor market and plunging gas prices kept households looking on the bright side.
Source : Bloomberg