Tech share leading Wall Street’s dip

US stocks sank Friday as the major indexes failed early on to build on a Thursday rally and were in danger of giving up the week’s gains.

The S&P 500 was down 0.9%, while the Dow Jones Industrial Average retreated by 0.5%. The tech-heavy Nasdaq Composite plunged 1.4%, leading the way down.


The moves Friday came as China reported that its economy picked up steam last month, easing concerns about the world’s second-largest economy.

In the US, the United Auto Workers union officially launched a historic strike at select Big Three automaker plants.

The Wall Street benchmarks rallied on Thursday, after retail sales and wholesale price inflation for August came in hotter than expected.

Those signs of resilience in the US consumer and of persistent price pressures make a case for more Fed rate hikes. The central bank will meet next week as 97% of bets are currently on the committee holding interest rates at current levels.

New data on Friday painted a better picture for the Fed, with the University of Michigan’s consumer survey showing that consumers’ short-term inflation expectations had moved down to lows not seen in more than two years.

A recent oil price rally has spurred the rises in inflation, with a significant effect on stocks. On Friday, WTI crude and Brent futures took a slight break in the rally but stayed near the 2023 highs hit on Thursday.

In individual stock moves, all eyes continued to be on British chipmaker Arm, which debuted on public markets on Thursday with a near-25% rise. Arm stock was up a more modest 1% Friday.

Wall Street lost steam during the afternoon trading session on Friday, as the major indexes retreated from their gains on Thursday as investors look to next week’s Fed policy meeting.

The S&P 500 fell about 0.8%, while the Dow Jones Industrial Average decreased by 0.5% or about 175 points. The tech-heavy Nasdaq Composite lost more than 1%, leading the averages on their way down.