Stocks Drop 4 Percent in Rocky Week on Trade, Growth Worries

New York (AP) -

Wall Street capped a turbulent week of trading Friday with the biggest weekly loss since March as traders fret over rising trade tensions between Washington and Beijing and signals of slower economic growth.

The latest wave of selling erased more than 550 points from the DJIA, bringing its three-day loss to more than 1,400. For the week, major indexes are down more than 4 percent.

Worries that the testy U.S.-China trade dispute and higher interest rates will slow the economy have made investors uneasy.

On Monday, news that the U.S. and China had agreed to a 90-day truce in their escalating trade conflict drove stocks sharply higher, adding to strong gains the week before. The next day, as doubts mounted over the likelihood of a swift resolution to the trade dispute, stocks sank.

That sell-off extended to Thursday, when U.S. stock markets reopened for trading after a national day of mourning for former President George H.W. Bush.

The S&P 500 index fell 2.3 percent. The index has ended lower three out of the last four weeks. The Dow dropped 2.2 percent. The tech-heavy Nasdaq composite slid 3 percent.

The arrest of a senior Chinese technology executive, which was disclosed on Wednesday, could complicate the China trade negotiations.

Technology firms would have much to lose if trade relations with China worsen.

Apple, for instance, relies on China for 18 percent of its sales, according to FactSet. Chipmakers rely on China even more. Apple shares dropped 3.6 percent to $168.49 Friday, while chipmaker Advanced Micro Devices slid 8.6 percent to $19.46.

Oil prices rose after OPEC nations agreed to reduce global oil production by 1.2 million barrels a day for six months, beginning in January.

The news, which had been widely anticipated, pushed crude oil prices higher. U.S. benchmark crude rose 2.2 percent to $52.61 a barrel in New York. Brent crude, used to price international oils, gained 2.7 percent to $61.67 a barrel in London.

Bond prices rose, sending yields slightly lower. The yield on the 10-year Treasury fell to 2.86 percent from 2.87 percent late Thursday.

The decline in bond yields, which affect interest rates on mortgages and other consumer loans, weighed on banks, which make more money when rates are rising. Morgan Stanley slid 3 percent to $41.32.

In other trading Friday:

— The S&P 500 index fell 62.87 points, or 2.3 percent, to 2,633.08. The index has ended lower three out of the last four weeks.

— The Dow dropped 558.72 points, or 2.2 percent, to 24,388.95.

— The Nasdaq composite slid 219.01 points, or 3 percent, to 6,969.25.

— The Russell 2000 index of small-company stocks gave up 29.32 points, or 2 percent, to 1,448.09.

— The dollar fell to 112.64 yen from 112.65 yen late Thursday. The euro strengthened to $1.1422 from $1.1373.

— Gold gained 0.7 percent to $1,252.60 an ounce. Silver climbed 1.3 percent to $14.70 an ounce. Copper added 0.6 percent to $2.76 a pound.

— Wholesale gasoline climbed 3.7 percent to $1.49 a gallon. Heating oil rose 1.5 percent to $1.89 a gallon. Natural gas gained 3.7 percent to $4.49 per 1,000 cubic feet.

— In Europe, Germany’s DAX dipped 0.2 percent while the CAC 40 in France rose 0.7 percent. Britain’s FTSE 100 jumped 1.1 percent. Major indexes in Asia finished mostly higher.