U.S. Market Indexes Lower as Probability for Rate Hike Increases
U.S. market indexes were lower Friday. For the day the Dow Jones Industrial Average closed at 18085.45 for a loss of -394.46 or -2.13 percent. The S&P 500 was also lower, closing at 2127.81 for a loss of -53.49 points or -2.45 percent. The Nasdaq Composite closed lower at 5125.91 for a loss of -133.57 points or -2.54 percent. The VIX Volatility Index increased to 17.16 on Friday for a gain of 4.65 points or 37.17 percent.
Friday’s Market Movers
The Baker Hughes Rig Count was the only report on the economic calendar Friday. The report showed an increase of eight oil rigs in North America for the week. The rig count in Canada decreased by three and the U.S. reported an increase of 11 oil rigs.
Friday also included Federal Reserve speeches from Eric Rosengren and Rob Kaplan. Both suggested that a rate hike could happen in September which is not a factor the U.S. market has been placing a high probability on. The market saw its steepest decline since July after Treasury yields also gained for income focused investors.
For the day the following stocks traded actively:
Bank of America
In the Dow Jones Industrial Average, the following stocks led losses:
Verizon Communications Inc -3.32
Caterpillar Inc -3.29
Boeing Co -3.29
Coca-Cola Co -3.12
General Electric Co -3.00
United Technologies Corp -2.90
For the day real estate stocks led losses overall followed by stocks in the utilities and energy sectors. Technology was also lower. S&P 500 technology stocks were down 2.45 percent. The Nasdaq Composite closed lower at 5125.91 for a loss of -2.54 percent. The Nasdaq 100 was lower at 4681.53 for a loss of -2.55 percent. Stocks leading losses in technology included the following:
SBA Communications Corp -5.98
Viacom Inc -5.95
NXP Semiconductors NV -5.23
NVIDIA Corp -4.98
Twenty-First Century Fox Inc -4.77
Broadcom Ltd -4.51
In commodities, gold traded lower as evidenced by the SPDR Gold Trust which reported a loss of -0.88 points or -0.69 percent. The dollar was higher for the day as the U.S. Dollar Index gained 0.34 points or 0.36 percent to 95.33.
In small-caps, the Russell 2000 closed at 1219.21 for a loss of -39.15 points or -3.11 percent. The S&P 600 Small-Cap Index closed at 739.97 for a loss of -22.66 points or -2.97 percent. The Dow Jones Small-Cap Growth TSM Index closed at 7427.36 for a loss of -223.28 points or -2.92 percent. The Dow Jones Small-Cap Value TSM Index closed at 8595.52 for a loss of -280.65 points or -3.16 percent.
Other Notable Indexes
Other notable index closes included the S&P 400 Mid-Cap Index closing at 1528.31 for a loss of -45.97 points or -2.92 percent; the S&P 100 Index closing at 942.62 for a loss of -21.72 points or -2.25 percent; the Russell 3000 Index closing at 1259.94 for a loss of -32.78 points or -2.54 percent; the Russell 1000 Index closing at 1179.83 for a loss of -30.11 points or -2.49 percent; and the Dow Jones U.S. Select Dividend Index closing at 604.16 for a loss of -18.24 points or -2.93 percent.
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