WASHINGTON (dpa-AFX) - Stocks have moved mostly lower over the course of the trading day on Friday, adding to the losses posted in the previous session. The major averages have all moved to the downside, with the Dow falling to its lowest intraday level in a month.
Currently, the major averages are just off their lows of the session. The Dow is down 372.89 points or 0.8 percent at 43,803.76, the Nasdaq is down 134.90 points or 0.7 percent at 19,827.46 and the S&P 500 is down 37.30 points or 0.6 percent at 6,080.22.
The notable weakness that has emerged on Wall Street comes after the University of Michigan released a report showing consumer sentiment in the U.S. deteriorated by much more than previously estimated in the month of February.
The University of Michigan said its consumer sentiment index for February was downwardly revised to 64.7 from a preliminary reading of 67.8. Economists had expected the index to be unrevised.
With the unexpected downward revision, the consumer sentiment index is well below the January reading of 71.7, tumbling to its lowest level since hitting 61.3 in November 2023.
The substantial deterioration by consumer sentiment came amid a surge by year-ahead inflation expectations, which spiked to 4.3 percent in February from 3.3 percent in January, reaching the highest level since November 2023.
Long-run inflation expectations also rose to 3.5 percent in February from 3.2 percent in January, reflecting the largest month-over-month increase since May 2021.
'For both short- and long-run inflation expectations, this month's increases were widespread and seen across income and age groups,' said Hsu. 'Inflation expectations rose this month for Independents and Democrats alike; they fell slightly for Republicans.'
A steep drop by shares of UnitedHealth (UNH) is also weighing on the Dow, with the health insurance giant down by 8.4 percent after hitting its lowest intraday level in over ten months.
The plunge by UnitedHealth comes after a report from the Wall Street Journal said the Justice Department has launched an investigation into the company's Medicare billing practices in recent months.
Sector News
Gold stocks have moved sharply lower on the day, dragging the NYSE Arca Gold Bugs Index down by 3.4 percent. The sell-off by gold stocks comes as the price of the precious metal is pulling back off its record highs.
Substantial weakness has also emerged among transportation stocks, as reflected by the 3.3 percent nosedive by the Dow Jones Transportation Average.
Oil producer, retail and housing stocks are also seeing notable weakness, moving lower along with most of the other major sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday, Hong Kong's Hang Seng Index spiked 4.0 percent, China's Shanghai Composite Index advanced by 0.9 percent and Japan's Nikkei 225 Index rose by 0.3 percent.
Meanwhile, the major European markets have turned mixed on the day. While the French CAC 40 Index is u by 0.3 percent, the U.K.'s FTSE 100 Index is down by 0.1 percent and the German DAX Index is down by 0.2 percent.
In the bond market, treasuries are extending the upward move seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.9 basis points at 4.460 percent.
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