U.S. markets fell on Friday, leaving the
S&P 500, the Dow Jones Industrial Average, and the Nasdaq all down about 1
percent this week.
The S&P 500 Index saw its biggest weekly
loss since June, closing the week at 1,691. The Dow dropped 186.62 points this
week to close at 15,423. The Nasdaq fell 32.84 for the week to close at 3,660.
Even with the major indexes all retreating
about 1 percent this week, the market is still up between 18 percent and 23 percent
for the year.
The S&P 500 has grown 19 percent this year topped
1,700 for the first time on Aug. 1. It surpassed
the mark twice yesterday before losing steam today to close below that level. The
index is down 1.1 percent for the week, the biggest weekly slide since June 21.
The Dow’s weekly decline snaps its longest winning streak since August 2012.
There are indications
the Fed
will start to slow its bond purchases in September with the economy strengthening.
Comments from several Fed regional presidents indicated the taper may be close
at hand. The Fed stimulus has helped boost the S&P 500 by more than 150
percent from its bear-market low in 2009.
The Fed has set an unemployment target of 7.0
percent for ending the bond-purchase program. Data yesterday showed jobless
claims fell in July to the lowest monthly rate since before the recession. A
report today indicated inventories at U.S. wholesalers unexpectedly declined in
June for the third month as demand grew.
Stronger-than-estimated corporate earnings have
also helped boost equities this year. So far, 72 percent of the S&P 500 companies
that have reported quarterly results this period have exceeded analysts’ expectations
and 56 percent have beaten sales projections.