U.S. stocks dipped on Friday after disappointing housing starts data for July signaled continued weakness in the real estate market as the third quarter began.
By 9:35 a.m. ET, the Dow Jones Industrial Average had dropped 53.74 points, or 0.13%, to 40,509.32. The S&P 500 slipped 12.63 points, or 0.23%, to 5,530.59, and the Nasdaq Composite fell 52.02 points, or 0.30%, to 17,542.48.
At the opening bell, the Dow Jones was down 34.2 points, or 0.08%, to 40,528.86. The S&P 500 declined 12.7 points, or 0.23%, to 5,530.5, and the Nasdaq Composite dropped 78.1 points, or 0.44%, to 17,516.404. Shares of semiconductor equipment maker Applied Materials fell over 4% after the company projected fourth-quarter revenue slightly above Wall Street expectations.
Meanwhile, packaging company Amcor saw its stock tumble more than 6% after reporting a decline in fourth-quarter sales.
In the bond market, the yield on the 10-year Treasury note decreased to 3.88% from 3.92% on Thursday.
Crude oil prices also took a hit on Friday, dropping more than $2 amid concerns over China’s economic outlook. Brent crude futures fell by $1.59, or 2%, to $79.45 per barrel by 1:15 p.m. GMT, while U.S. West Texas Intermediate crude futures dropped $1.71, or 2.2%, to $76.45.
Chinese economic data released on Thursday showed new home prices declining at their fastest pace in nine years in July, along with slowing industrial output and rising unemployment. In a cabinet meeting on Friday, Premier Li Qiang emphasized the need for significant efforts to boost the economy, with a focus on stimulating consumption, according to state media.
In the precious metals market, gold prices surged to a record high on Friday, driven by a weaker U.S. dollar and increasing expectations of a potential interest rate cut in September. Spot gold rose 1.3% to $2,487.66 per ounce by 9:30 a.m. EDT (1:30 p.m. GMT), while U.S. gold futures climbed 1.4% to $2,526.40.
On the other hand, silver prices dipped slightly, down 0.2% to $28.32 per ounce.
Wall Street Today News (FAqs)
1. Why did U.S. stocks fall on Friday?
U.S. stocks edged lower due to weak housing starts data for July, indicating continued struggles in the real estate market at the start of the third quarter.
2. How much did the major U.S. stock indices decline?
The Dow Jones Industrial Average fell by 53.74 points (0.13%), the S&P 500 dropped 12.63 points (0.23%), and the Nasdaq Composite lost 52.02 points (0.30%).
3. Which companies saw significant stock price declines on Friday?
Semiconductor equipment maker Applied Materials fell more than 4% after its revenue forecast, and packaging company Amcor dropped over 6% following a decline in its fourth-quarter sales.
4. What was the impact on the bond market?
The yield on the 10-year Treasury note fell to 3.88% from 3.92% on Thursday, indicating increased demand for bonds.
5. Why did crude oil prices drop on Friday?
Crude oil prices fell by more than $2 due to concerns over China’s economic outlook, including weak data on home prices, industrial output, and rising unemployment.
6. How did Brent crude and U.S. West Texas Intermediate crude perform?
Brent crude futures dropped by $1.59 (2%) to $79.45 per barrel, and U.S. West Texas Intermediate crude futures fell by $1.71 (2.2%) to $76.45 per barrel.
7. What economic data from China impacted global markets?
Chinese data showed the fastest decline in new home prices in nine years, slowing industrial output, and rising unemployment, raising concerns about the country’s economic health.
8. How did gold prices react in the market?
Gold prices surged to a record high, with spot gold rising 1.3% to $2,487.66 per ounce, driven by a weaker U.S. dollar and expectations of a potential interest rate cut in September.
9. What were the movements in silver prices on Friday?
Silver prices fell slightly, down 0.2% to $28.32 per ounce.
10. What did China’s Premier Li Qiang emphasize in his recent statements?
Premier Li Qiang highlighted the need for significant efforts to boost China’s economy, with a particular focus on stimulating domestic consumption.