U.S. equities posted their third weekly decline of 2019 as troubling data from two of Europe’s largest economies rekindled concern about a global slowdown and eroded optimism that the Federal Reserve’s dovish tilt could help prolong the bull market.
The Standard & Poor’s 500-stock index fell 0.8 percent in the five days, with financial stocks leading the way down as 10-year Treasury yields sank to the lowest in more than a year. The Dow Jones industrial average declined 1.3 percent to 25,502. The Nasdaq 100 index gained 0.3 percent, buoyed by a rally in chipmakers including Micron Technology and Advanced Micro Devices.
Stocks resumed this year’s upward charge on Thursday, a day after Fed policymakers said they had no plans to raise interest rates in 2019. The dovish lurch drove the S&P 500 to a five month-high and within 2.6 percent of its September record. That was followed by the biggest one-day plunge since January after weak economic data from Germany and France renewed worries about global growth.
Five of the S&P 500’s main 11 industry groups ended the week lower, with financial stocks falling 4.9 percent in their worst day of the year. Tiffany’s 6.9 percent rally stood out as the biggest gainer.
The Treasury will sell $48 billion of three-month bills and $39 billion of six-month bills Monday. They yielded 2.46 percent and 2.48 percent in when-issued trading.