Stocks finished lower Friday, as investors assessed the latest updates on the U.S. and China trade dispute. The Dow pared a 250 point decline to close down 90 points, while the S&P 500 slipped 0.7%. Meanwhile, weakness in the Technology sector prompted the Nasdaq Composite to retreat 1.0%.
Investor sentiment was dampened after a report indicated the Trump Administration would delay waivers for U.S. Tech companies to supply components to Huawei. Adding to the downbeat mood were comments from President Trump suggesting planned trade negotiations in September with China could be cancelled. Perceived “safe-haven” assets modestly weakened, with COMEX gold off 0.1% to $1,496.60. Treasuries were lower along the curve, with the yield on the 10-year note up two basis points to 1.73%. On the data front, the core Producer Price Index, which excludes volatile components food and gas, declined 0.1% month-over-month in July, less than the projected 0.1% advance. The 2.1% annualized core reading was the slowest in two years.
Eight of 11 S&P 500 sectors ended in negative territory. Technology stocks paced the decline as chipmakers underperform. Energy stocks also lagged despite WTI crude jumping 3.5% to $54.41/barrel. In earnings, shares of Uber tumbled 6.8% after the ride sharing company posted a larger than anticipated quarterly loss. Activision Blizzard fell 2.6% despite the video game developer topping analyst projections on both the top and bottom line.
The S&P 500 conclude a volatile week with a 0.5% decline, and the Dow lost 0.8%. The Nasdaq Composite slipped 0.6% for the week.