by The US stock market is on its way to one of the worst weeks in many months, after a series of dizzying policy shifts at rates from the White House.
The S&P 500 fell almost 1 percent on Friday, which extended the loss for the week to around 4 percent, on course for the third consecutive week of losses and the worst week since September.
There has been a sharp shift shift since the index reached a record less than a month ago, because investors are concerned about the process for economic growth, aggravated by rates about the import of the largest trading partners in the country. Surveys have also demonstrated increasing concern among consumers.
On Friday, a new report on the labor market offered some lighting, but not enough to resist the sales pressure that the market treats. The data showed a pace of hiring moderate enough to temper the fear of revival of inflation, but still robust enough to prevent worries about a delaying economy.
Lara Castleton, American head of the construction and strategy of portfolio at Janus Henderson Investors, said that the data would probably alleviate “overly acidic expectations” about the economy.
“After trusting the economy has taken a turn,” she said, “Wanted Market participants wanted to confirm or reverse sentiment.”
Investors who had hoped that President Trump’s tariff threats were only a negotiating tactic, were disappointed on Tuesday when 25 percent rates came into effect on Mexico and Canada, and another 10 percent rates for China. On Thursday, concessions were made, in which the rates for many goods from Canada and Mexico were suspended, but it was unable to burn in a rally.
“I think the markets essentially take President Trump a little more seriously for rates,” said Jim Caron, Chief Investment Officer of the Portfolio Solutions Group at the Morgan Stanley Investment Institute. He said that despite the recent sale, large stock indexes remained close to record highs and the economy remained in good condition.
Much of the sale is powered by large technology companies, which have a major effect on broad indexes due to their size. Since the S&P 500 peak on February 19, the index has fallen by more than 7 percent. A separate measure that gives all shares an equal weight in the index had fallen by 4.6 percent in the same period.
What is not clear is whether investors sell because they see the tide running for technology companies or because of broader care.
“In the past weeks, and perhaps for the coming weeks, we have completed a very challenging news cycle,” said Mr Caron. “We have to get through it and assess how much damage there is to markets.”
