Dow Jones sheds over 600 points at close, ends 4-week gains

US stocks ended in the negative territory on Friday as the 10-year bond yield dropped to its lowest level since December 2023, amidst a frantic rush by investors to buy bonds seeking a safe haven due to renewed fears of an economic recession.

The Dow Jones Industrial Average shed610 points, or 1.5%, closing at 39,737 points, ending over four-week gains. The index lost 2.10% this week.

The S&P 500 index dipped 1.85%, or 100 points, to end at 5,346 points, posting losses for the third consecutive week, after falling more than 2% during the week.

Similarly, the Nasdaq Composite Index plunged 2.45%, or 417 points, to finish it 16,776 points. The technology index extended its downturn for the third week, seeing corrections after shedding 3.35% this week.

Elsewhere, the STOXX Europe 600 Index closed 2.75% lowerat 497.85 points. It recorded a weekly loss of 2.90%. Germany’s DAX 40 Index shed 2.35% to 17,661 points, with FTSE 100 tumbling1.3% to 8,147 points. The CAC 40 Index lost nearly 1.6% to end at 7,251 points.

The Nikkei 225 shed 5.8%, or 2,216 point, to 35,909 points. TOPIX also dived 6.15% to 2,537 points. Both indices lost 4.65% and 6%, respectively.

In the oil market, futures for benchmark Brent crude for October delivery fell by 3.40%, or $2.71, to $76.81 a barrel, recording a weekly loss of 4.30%.

Meanwhile, the price of US WTI crude for September delivery dropped 3.65%, or $2.79, to $73.52 a barrel, posting a loss of 4.70% during the week.

As for gold, December futures prices eased 0.45%, or $11, to $2469.8 per ounce, but the yellow metal achieved weekly gains of about 1.75%.

New orders for manufactured goods fell for the second consecutive month in June, registering the deepest decline since the beginning of the year, while the unemployment rate in July rose to its highest level since October 2021, with job growth slowing more than expected.