Investing.com – The Dow recorded a second-straight weekly gain despite coming under pressure Friday on a rout in tech and concerns that global economic growth was running out of steam.
The Dow Jones Industrial Average fell 0.77%, the S&P 500 fell 0.94%, while the Nasdaq Composite fell 1.65%.
Tech wreaked havoc on Wall Street as investors continued to bail on FAANG stocks in favor of defensive corners of the market on concerns slowing Chinese economic growth, partly driven by the U.S.-China trade war, could hurt economic growth.
Comments on trade from White House trade advisor Peter Navarro poured cold water on optimism a resolution could be sought at the month-end G-20 meeting between Trump and Chinese President Xi Jinping.
“If there is a deal — if and when there is a deal, it will be on President Donald J. Trump’s terms. Not Wall Street’s terms,” Navarro said
Among the FAANG stocks, Apple (NASDAQ:AAPL) and Netflix (NASDAQ:NFLX) were the hardest hit, with the latter closing more than 4% lower.
Weakness in Apple comes despite an upbeat note from Morgan Stanley earlier this week, in which the Wall Street bank waxed lyrical about the company’s growing services business and upgraded its price target on the iPhone maker’s shares to $253 from $226.
Apple’s services business it set to exceed past expectations, partly because its iCloud business is already bigger than previously estimated, Morgan Stanley said.
The slump in tech was exacerbated by wave of selling across chip stocks on the heels of bearish quarterly results from key apple supplier Skyworks Solutions (NASDAQ:SWKS). Micron (NASDAQ:MU), Intel (NASDAQ:INTC) and Broadcom (NASDAQ:AVGO) closed in the red.
In signs of skittish sentiment about risk, defensive corners of the market like consumer staples, which includes makers of household needs like food, beverages and personal care products, were in favor, posting gains for the day.
Monster Beverage (NASDAQ:MNST), Campbell Soup (NYSE:CPB) and Colgate-Palmolive (NYSE:CL) led the charg higher for consumer staples.
Energy, meanwhile, accentuated the rout on Wall Street as plummeting U.S. oil prices added to fears about a global economic slowdown.
In corporate news, General Electric (NYSE:GE) was met with heavy selling pressure after JPMorgan (NYSE:JPM) cut its price on target on the company’s stock to $6, citing concerns about profit growth.
Top S&P 500 Gainers and Losers Today:
Monster Beverage (NASDAQ:MNST), Colgate-Palmolive (NYSE:CL) and NRG Energy (NYSE:NRG) were among the top S&P 500 gainers for the session.
Pacific Gas & Electric (NYSE:PCG), Activision Blizzard (NASDAQ:ATVI) and Edison (NYSE:EIX) were among the worst S&P 500 performers of the session.