US Stocks Drop, Dow Falls to Negative Territory

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US Stocks Drop, Dow Falls to Negative TerritoryOn Friday US stocks dropped and the Dow ended in negative territory for 2014 and the Nasdaq and S&P 500 posted their worst weeks from May 2012.

Technology shares led to the decline for the day after a chipmaker warned of major pullbacks in the industry.

According to Reuters, the Dow Jones industrial average dropped 0.69% or 115.15 points to 16,544.1, the Nasdaq Composite Index fell 2.33% or 102.10 points to 4,276.24 and the S&P 500 dropped 1.15% or 22.08 points to 1,906.13.

Wall street stocks continued taking beatings on fears that softening Asian and European economies might slow down the US business concerns overseas.

Earlier, US data revealed that there was a drop of 0.5% in import prices in September from August, better than the market calls for a 0.7% contraction, though there is still a decline. A softer global economy and a stronger dollar might hurt the US businesses with exposure overseas, according to NASDAQ.

Technology stocks suffered after semiconductor Microchip Technology Incorporated cut its sales outlook for Q3.

The leading performers in Dow Jones industrial Average include Coca-Cola Enterprises Inc. were up 1.39%, Walt Disney Company gained 0.67% and Procter & Gamble Company rose 1.23%.

The worst performers in the Dow Jones Industrial Average include Microsoft Corporation dropped 3.94%, Intel Corporation dropped 5.04% and 3M company dropped 3.46%.

Meanwhile, European indices dropped lower.

After the end of the European trade, the CAC 40 of France dropped 1.64% and the DAX Germany dropped 2.40% and the DJ Euro Stoxx 50 dropped 1.53%. in the UK, the FTSE 100 dropped 1.43%.

JP Morgan Funds chief global strategist, David Kelly said, “A lot of investors are trying to come to grips with the pickup in volatility we’ve suddenly seen during this week.”

There was an increase in bond prices and the yield on the 10-year Treasury note dropped to 2.29%.

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To contact the reporter of the story: Jonathan Millet at john@forexminute.com