US stocks fall again, extending losing streak

Traders on the floor of the New York Stock Exchange. PHOTO: REUTERS

NEW YORK - Wall Street stocks edged lower on Friday, extending a losing streak as markets continued to anticipate a period of persistently elevated interest rates.

Major indexes flirted with positive territory throughout the day, but kept retreating before finally finishing lower for a fourth straight day.

The broad-based S&P 500 finished at 4,320.06, down 0.2 per cent for the day and 2.9 per cent for the week.

The Dow Jones Industrial Average dropped 0.3 per cent to 33,963.84, while the tech-rich Nasdaq Composite Index lost 0.1 per cent at 13,211.81.

Stocks have been playing defence since the Federal Reserve’s policy decision on Wednesday.

While the United States central bank kept interest rates unchanged, Fed officials signalled that they could hike interest rates again in 2023.

“The big takeaway from this week is that Wall Street is anticipating that higher-for-longer is not going away any time soon,” said Mr Edward Moya from Oanda.

“Stocks are going to struggle with this backdrop of higher rates, a weakening global outlook, and potential risk of US$100 oil.”

Mr Steve Sosnick from Interactive Brokers said investor efforts to rally were “understandable” after two straight days of big declines.

“Traders are conditioned to try to buy dips, and I think that’s what they tried to do this morning,” said Mr Sosnick. “But there was really no follow-through.”

Ford gained 1.9 per cent after the United Auto Workers (UAW) reported progress in talks on reaching a new labour contract with the company.

But UAW expanded a strike against the other two Detroit automakers, General Motors and Stellantis. GM fell 0.4 per cent while Stellantis added 0.1 per cent. AFP

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