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By Brian
Hershberg | Friday, September 10 Fall
Arrives Early. U.S. stock
losses accelerated into the close, ending one of the market's
worst weeks in months on a sour note amid a swirl of discordant
headlines. The day
began bright enough, with major indexes climbing following late Thursday news
of President Biden's mandate
that companies with 100 or more employees either require Covid-19
vaccinations or weekly tests. Further burnishing the
initially bullish run: a bid by Biden and his Chinese counterpart, Xi
Jinping, to cool tensions;
wholesale inflation news that, while elevated, was roughly in line with
expectations; and a hopefulness that recent economic growth concerns would
subside. Sentiment
began to sag, though, as investors digested a Senate
Democrat proposal for a 2% tax
on the money spent on corporate share buybacks, and then really
began their decline late afternoon on news, reported
by Bloomberg, that the Biden administration is weighing an
investigation into Chinese subsidies. The Dow
Jones Industrial Average lost 761 points, or 2.2%, on the
week. It was the largest weekly decline since mid-June. The S&P
500 shed
1.7% on the week, snapping a two-week winning streak. The Nasdaq
Composite fell 1.6%, also snapping a two-week run of
gains. A number of tech
stocks bucked the Friday downturn, Barron's reporter Max
A. Cherney notes, after a California judge ruled
that Apple must allow developers that distribute apps
via its online store to bypass Apple's payment systems. Apple, which
could lose billions of dollars, fell 3.3%—though some analysts say the
risk is limited. Among the gainers: Stocks of
videogame companies with exposure to mobile offerings jumped as investors
anticipated the fresh source of profit the rules change could
create. Zynga, which makes a legion of mobile games, soared 9%,
and Playtika Holding rose 6.8%. Roblox (RBLX) jumped
3.8%, Activision Blizzard (ATVI) advanced 2.7%, and Electronic
Arts (EA) rose 2.7%. Still, not
even that passel of tech gainers could lift the sector out of the red as all
11 S&P 500 sectors declined Friday. So long,
summer rally. Here's hoping for a short fall. |
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DJIA:
-0.78% to 34,607.72 The Hot
Stock: NOV +2.9% Best Sector:
Energy -0.04% |
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