Stocks finished lower Friday to cap a second consecutive week of declines amid reports that the U.S. is considering limiting investment flows into China. This follows morning reports that indicated U.S. and Chinese trade officials will resume in-person negotiations on October 10th in Washington D.C. The Dow reversed early session gains and fell 71 points, losing 0.4% for the week. The S&P 500 was off 0.5% to cap a 1.0% weekly decline. The Nasdaq Composite shed 1.1%, retreating 2.2% for the week.
On the data front, the Fed’s preferred gauge of inflation, core PCE Deflator, climbed at a 1.8% annualized rate in August, above the prior month’s upwardly revised 1.7% figure. Separately, personal income ticked up 0.4% in August while personal spending climbed by 0.1% in the same time period. A final reading on consumer sentiment levels in September from the University of Michigan came in strong at 93.2, above the prior reading of 92.0. Treasuries strengthened with the yield on the 10-year note dropping two basis points to 1.68%.
Six of 11 S&P 500 sectors closed in negative territory with Communication Services and Technology stocks pacing the decline. Shares of Chinese’s Tech stocks took a hit Friday with Alibaba declining 5.2%. Micron Technology declined the most in nearly four years closing down 11.0% after the chipmaker offered cautious current quarter guidance due to uneasy economic conditions around the globe. In other corporate news, Las Vegas Sands added 2.2% on news the company will be added to the S&P 500 index next week.