Stock markets continue downward trend; Dow ends week with plunge

Stock markets continue downward trend; Dow ends week with plunge

[Ed. – Keep in mind that if China has surpassed U.S. GDP, that means the U.S. economy is experiencing a major slowdown.]

U.S. stocks capped a wild week with losses Friday, as sharp declines in technology shares dragged the broad market lower and the Dow industrials back into negative territory for the year. …

The Dow’s back and forth swings starting Tuesday covered nearly 1,000 points, leaving the blue chips down 466 points for the week.

For much of the session Friday, the Dow industrials and the S&P 500 made modest moves, even as semiconductor stocks sent the Nasdaq Composite sharply lower. In the final hour of trading, however, sellers re-emerged, swiftly sending broad market benchmarks deep into the red. …

In Europe, equities fell sharply, with the Stoxx Europe 600 index down 1.6%. Germany’s DAX index fell 2.4%, marking its lowest close in almost a year. It is down more than 12% since its all-time high in late June, placing the index in correction territory. …

“The market in totality and more so in the U.S. has been very complacent,” said Safa Muhtaseb, a portfolio manager on ClearBridge Investments’ global team, which manages $2.5 billion. He said European data earlier in the week, particularly disappointing German industrial output for August, served as a wake-up call for investors.

“Germany has been the big wheel driving the eurozone’s growth, and with Germany slowing down, that elevates the risk of recession,” Mr. Muhtaseb said. “My gut says we’re going lower before we’re going higher.”

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