In Friday’s midday trading, US stocks were mixed on track to close the week lower. The Nasdaq Composite Index was weighed heavily by slides in semiconductor stocks.
The Standard & Poor 500 Index gained, erasing its earlier decline with a rebound in oil prices. European stocks declined on global growth concerns.
According to Bloomberg, the S&P 500 gained 0.2% after a 0.8% drop and the Nasdaq Composite Index dropped 0.6%. The Stoxx Europe 600 Index declined 1.6%, the worst week from May 2012. The DAX Index of Germany dropped the highest since March.
The dollar rebounded against most of the major currencies. Crude oil erased its losses after retreating to the lowest from July 2012. Industrial metals were led lower by copper.
Germany’s finance minister and Mario Draghi, European Central Bank President clashed yesterday over the steps that should be taken to revive the euro zone’s growth. The Federal Reserve officials said that the US economy is at a risk from global slowdown.
ABC News reported a sharp decline in chipmaker stocks. Microchip Technology dropped 11.3% or $5.14 to $40.39. The company cut sales outlook for the quarter, warning investors to expect similar news from chip companies.
Avago Technologies dropped 10% or $8.32 to $72.28. Texas Instruments dropped 6.8% or $3.12 to $42.90 and Intel dropped 3.7% or $1.21 to $32.40. Advanced Micro Devices dropped 4.1% or 12 cents to $2.83 and Micron Technology dropped 5.25 or $1.60 to $29.04.
Since hitting a record high least month, global equities have lost a value of $3.5 trillion.
Bank J Safra Sarasin AG strategist Alessandro Bee said, “Risks to global growth are at the center of all concerns right now. Investors are paying more attention to what is going on outside America because if a slowdown in the global economy drags the US economy down, that really does not bode well for equities.”
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