International growth concerns and a steep decrease in oil prices had a heavy impact on Wall Street, dragging the three largest U.S. indexes down for the second consecutive day on Friday. Although the demand for oil raised, oil settled down after traders took their profits after a three-day climb that began on Monday and pushed oil towards the highest point it has been at this year. At the same time, the dollar became stronger.
Financial stocks came under pressure once more as international issues, such as quandaries over whether or not the Federal Reserve is going to raise interest rates, as well as an upcoming vote on whether or not Britain is going to leave the European Union. As a result, investors decided to invest in less risky assets. Government bond rates declined internationally, and gold remained stable near a three-week high.
“The U.S. indexes are trailing what is happening overseas this morning. We’ve seen a decline in crude prices and strength in U.S. treasuries and that combination adds ups to a red day,” Paul Springmeyer, investment management director at U.S. Bank Wealth Managing in Minneapolis, said. “There still remains quite a bit of uncertainty out there … and returns will be fairly muted until those question marks are resolved.”
At 11:15 a.m. ET the Dow Jones Industrial Average .DJI had declined 68.69 points, or 0.38 percent, to 17,916.5. The S&P 500 .SPX dropped 12.47 points, or 0.59 percent, to 2,103.01. The Nasdaq Composite .IXIC fell 43.08 points, or 0.87 percent, to 4,915.53. Although there were losses on Thursday, the S&P and Dow were going to close at the higher point of the week. However, the Nasdaq dropped down. Eighty percent of the 10 S&P sectors had declined, led by a 1.1% fall in the financials index .SPSY.