Wall Street capped another turbulent week of trading Friday with a broad slide in stocks that left the S&P 500 with its third-straight weekly loss.
The S&P 500 fell 1.1 percent, led once again by a sell-off in technology companies, with Apple, Amazon and Alphabet weighing particularly on the market. Technology stocks and other companies that powered the market’s strong comeback this year have suddenly lost momentum amid worries that they have become too expensive.
The sell-off wiped out the last of the solid gains the market saw to start the week. The S&P 500 is on track for its first monthly loss since March. September is historically the worst month for stocks.
“The market has been poised to just pull back, take a breather,” said Quincy Krosby, chief market strategist at Prudential Financial. “Raising capital is prudent during a month that is known statistically, historically for being difficult for the market.”
The S&P 500 fell 37.54 points to 3,319.47. The decline marks the the first three-week losing streak for the benchmark index since October 2019. The Dow Jones Industrial Average dropped 244.56 points, or 0.9 percent, to 27,657.42. The Nasdaq composite shed an early gain, losing 116.99 points, or 1.1 percent, to 10,793.28. Smaller stocks also fell, with the Russell 2000 index of small caps giving up 5.82 points, or 0.4 percent, to 1,536.78.
Momentum in the market shifted Wednesday after the Federal Reserve said the outlook for the U.S. economy remains uncertain and policymakers expect short-term interest rates to stay at record lows through 2023. Low rates typically turbocharge the market, but some investors may have been looking for the Fed to be more aggressive.