WASHINGTON (dpa-AFX) - Following the sell-off seen during Thursday's session, stocks rebounded in early trading on Friday but showed a notable move back to the downside as the day progressed. The major averages pulled back well off their early highs and into negative territory.
The major averages added to the steep losses posted in the previous session, falling to new three-month closing lows. The Nasdaq slid 206.62 points or 0.9 percent to 22,105.36, the S&P 500 fell 10.43 points or 0.6 percent to 6,632.19 and the Dow dipped 119.38 points or 0.3 percent to 46,558.47.
For the week, the Dow plunged by 2.0 percent, the S&P 500 tumbled by 1.6 percent and the Nasdaq slumped by 1.3 percent.
The pullback seen over the course of the session came as trading continued to be largely driven by reaction to crude oil prices.
Stocks initially benefitted from a pullback by the price of crude oil, with crude for April delivery plunging by as much as 3.9 percent after skyrocketing over the course of the two previous sessions.
However, crude oil prices recovered from the early pullback and moved sharply higher over the course of the session, leading to the downturn by stocks.
The volatility shown by oil came as President Donald Trump has ramped up his rhetoric against Iran, calling the regime 'deranged scumbags' that he has the 'great honor' to kill.
On the U.S. economic front, a typically closely watched Commerce Department report showed the annual rate of consumer price growth unexpectedly slowed in January.
The Commerce Department said the annual rate of growth by its PCE price index slipped to 2.8 percent in January from 2.9 percent in December. The annual rate of growth was expected to remain unchanged.
Meanwhile, the annual rate of growth by the core PCE price index, which excludes food and energy prices, ticked up to 3.1 percent in January from 3.0 percent in December. Economists had the pace of growth to remain unchanged.
A separate report from the Commerce Department showed U.S. economic growth slowed by much more than previously estimated in the fourth quarter of 2025.
Sector News
Gold stocks moved sharply lower along with the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 5.2 percent to its lowest closing level in over a month.
Significant weakness was also visible among steel stocks, as reflected by the 2.7 percent slump by the NYSE Arca Steel Index.
Airline and software stocks also saw notable weakness on the day, while utilities and natural gas stocks moved to the upside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index slumped by 1.2 percent, while China's Shanghai Composite Index declined by 0.8 percent.
The major European markets also moved to the downside on the day. While the French CAC 40 Index slid by 0.9 percent, the German DAX Index decreased by 0.6 percent and the U.K.'s FTSE 100 Index fell by 0.4 percent.
In the bond market, treasuries moved modestly lower over the course of the session after seeing early strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 1.2 basis points to 4.285 percent after hitting a low of 4.236 percent.
Looking Ahead
Developments in the Middle East may continue to drive trading next week, although investors are also likely to keep an eye on the Federal Reserve's latest monetary policy decision.
With the Fed widely expected to leave interest rates unchanged, traders are likely to focus on central bank officials' latest projections for rates and the economy.
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