3 months ago
Stock Market

Stocks - Dow Ends Brutal Week Deeply in Red Amid Government Shutdown Fears

Investing.com - The Dow ended a brutal week with a steep selloff Friday as President Donald Trump threatened a "very

Investing.com - The Dow ended a brutal week with a steep selloff Friday as President Donald Trump threatened a "very long" government shutdown just hours ahead of the midnight deadline.

The Dow Jones Industrial Average fell 1.8%, and 6.4% for the week. The S&P 500 fell 2.14%. While the Nasdaq Composite dropped 2.99% and entered bear-market territory for the first time since 2008 as it has lost more than 20% since its August peak.

President Trump told reporters that there's a very good chance the House funding bill will fail to pass in the Senate and that the administration is prepared for a long shutdown.

The bill requires Democratic votes to clear the Senate, but Senate Minority Leader Chuck Schumer stressed that congressional Democrats will not support funding for the wall, raising the prospect of a partial government shutdown.

The selloff was led by tech on the back of a plunge in Facebook (NASDAQ:FB), off 6%, as Wall Street continued to be bearish on the scandal-hit social media company.

Needham cut its price on target on Facebook stock to $170 from $215 on expectations for ongoing margin pressure and the rising risk of increased litigation costs and regulatory oversight as global scrutiny on the social media company intensifies.

The Washington Post, citing people familiar with the matter, reported Wednesday that Karl Racine, attorney general for the District of Columbia, filed a claim against the Facebook for farming out its users' data to Cambridge Analytica.

Among other FANG stocks, Netflix (NASDAQ:NFLX) fell 5.5%, Alphabet (NASDAQ:GOOGL) fell 3.2% and Amazon.com (NASDAQ:AMZN) fell 5.7%.

But there was some reason for optimism as Nike (NYSE:NKE) surged 7% on the back of its better-than-expected fiscal second quarter earnings and revenue, sparking a bid a in retailer Foot Locker (NYSE:FL), which rose 1.75%.

Analysts said Nike's report highlighted key positives for Foot Locker including the Jordan brand returning to growth in North America, continued product innovation launches and clean North American channel inventory.

Wall Street reversed early session gains, which had followed decidedly dovish comments from New York Fed President John Williams.

Williams said the Federal Reserve will go into next year with its “eyes wide open” and reconsider programs such as its balance sheet reduction in the event of a weaker backdrop for economic growth.

Mixed economic data, meanwhile, drew a muted reaction somewhat as U.S. gross domestic product increased at a 3.4% annual rate in the July-September period, the Commerce Department said in its final estimate, below a previous estimate of 3.5%.

The Fed's preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, rose 1.9% in the 12 months through November.

Top S&P 500 Gainers and Losers Today:

Nike (NYSE:NKE), CarMax (NYSE:KMX) and Abiomed (NASDAQ:ABMD) were among the top S&P 500 gainers for the session.

Perrigo (NYSE:PRGO), ConAgra Foods (NYSE:CAG) and Twitter (NYSE:TWTR) were among the worst S&P 500 performers of the session.