Stocks in the U.S. moved lower on Friday as weaker-than-expected flash PMIs raised concerns about the economic outlook and the potential for slowing growth.
US stocks move lower
The S&P 500 fell 0.3%, the Nasdaq slipped 0.1%, and the Dow Jones extended losses to 360 points, with investors reacting to fresh data from S&P Global that showed an unexpected contraction in the services sector, even as manufacturing growth accelerated. The mixed data added to uncertainty about the economy’s trajectory, particularly as input prices accelerated and business expectations slumped due to growing concerns over federal government policies and potential regulatory changes.
Sector performances
Industrials, energy, and health care stocks led the decline, with major losses dragging down broader indexes. In particular, shares of UnitedHealth plunged almost 9% after The Wall Street Journal reported that the Justice Department has launched an investigation into the company’s Medicare billing practices in recent months. The news raised concerns about potential legal and financial repercussions for the health insurance giant, leading to sharp selling pressure.
Elsewhere, rising input costs and inflationary pressures weighed on investor sentiment, as businesses signaled growing uncertainty about pricing power and consumer demand. The market also faced pressure from shifting interest rate expectations, with some analysts questioning whether the Federal Reserve will delay rate cuts in response to lingering inflation risks.
S&P 500 little changed in the entire week
For the week, the S&P 500 remains little changed, while the Nasdaq has lost 0.3%, and the Dow is down 0.8% so far. Investors will now turn their attention to upcoming economic data releases and corporate earnings reports for further insight into the health of the economy and potential shifts in monetary policy.
