Stocks finished firmly lower Friday. The Dow lost 414 points to 22,445 while the S&P 500 fell 50 points to 2,416. The Nasdaq Composite declined 195 points to 6,333.
The major averages extended their recent rout as the Nasdaq dipped into bear market territory. This marked the first time since 2009 that a major U.S. average closed below 20% from its recent high. The declines left the tech-heavy index down 8.4% for the week. The S&P 500 lost 7.1%, while the Dow notched its worst week in a decade, sinking 6.9%. On the data front, U.S. third-quarter GDP grew at a 3.4% annualized rate, below forecasts of 3.5%. Core PCE deflator, which is the Fed’s preferred gauge of inflation, increased 1.8% year-over-year in November, below the central bank’s 2.0% target.
All 11 S&P 500 sectors ended in negative territory. The Communications Services and Technology sectors lagged with the oft-cited FAANG group losing nearly 5%. Perrigo was a notable decliner, tumbling 29.0% to $37.08, following news the drugmaker faces a $1.6 billion tax bill from the Irish government. Nike proved to be a bright spot, surging 7.3% to $72.44 after reporting earnings that topped analyst estimates on both the top and bottom line.
Breadth was negative by 6:1 on the NYSE and by 4:1 on the Nasdaq. Composite NYSE volume was more than 7.1 billion shares.
Treasuries strengthened with the yield on the 10-year off two basis point at 2.78%. In commodities, WTI crude finished the week down 11% to $45.59/barrel, its worst weekly performance since2016. COMEX gold was off 0.8% to $1,253.80/ounce amid a stronger dollar.