Nasdaq closes lower, capping its worst week since April
The Nasdaq Composite moved lower Friday, pressured by more losses in artificial intelligence stocks, and was on pace for a losing week as new economic data added to investors’ fears of a slowdown.
The tech-heavy index shed 0.3%. In contrast, the S&P 500 traded around the flatline, as did the Dow Jones Industrial Average. At their lows of the day, the Nasdaq had pulled back 2.1%, while the broad market S&P 500 and blue-chip Dow had fallen 1.3% and more than 400 points, or roughly 0.9%, respectively.
Stocks came off their lows after Senate Minority Leader Chuck Schumer, D-N.Y., offered up a new plan to Republicans that would enable the record-breaking U.S. government shutdown to end. The proposal would provide short-term funding for federal government operations in exchange for a one-year extension of enhanced Affordable Care Act tax credits.
In the midst of the stoppage, concerns among investors around the strength of the U.S. economy have grown. A survey from the University of Michigan revealed Friday that consumer sentiment has neared its lowest level ever. The data comes just a day after firm Challenger, Gray & Christmas reported that layoff announcements in October reached their highest level for the month in 22 years.
Investors have been getting little on the economic data front because of the ongoing shutdown. The Bureau of Labor Statistics would have released the nonfarm payrolls report Friday. For the second month in a row, however, it is unable to do so. Economists surveyed by Dow Jones had been expecting the report to show a decline of 60,000 jobs and an increase in the unemployment rate to 4.5%.
Source: CNBC.com
