Investing.com - U.S. stocks fell back on Friday, snapping a 10-day rally as markets took a breather following recent strong gains which sent the Dow Jones Industrial Average to record highs.
The Dow Jones industrial average fell 0.2% on Friday to finish the week with a 0.8% gain. The S&P 500 slipped 0.02% on Friday, paring back its weekly gain to 0.6%, just 0.28% below its all-time closing high hit in October 2007. The Nasdaq was down 0.32% on Friday, and ended the week just 0.15% higher.
Market sentiment was hit after data showed that the University of Michigan’s consumer sentiment index dropped to 71.8 in March, the lowest level since December 2011, from a final reading of 77.6 in February.
The disappointing data sparked profit taking ahead of an upcoming Federal Reserve policy meeting after a recent string of strong U.S. economic data reinforced optimism over the country’s economic recovery and saw the dollar strengthen across the board.
Meanwhile, U.S. inflation data indicated that the Federal Reserve had sufficient scope to continue its quantitative easing program.
The Labor Department reported that U.S. consumer price inflation rose 0.7% in February, bringing the annualized rate of consumer inflation to 2.0%.
Core consumer prices, which exclude volatile food and energy costs, also rose 2% year-on-year.
In December, the U.S. central bank said an “exceptionally low” target interest rate is appropriate as long as inflation isn’t forecast to rise to more than 2.5%.
In Europe, the benchmark Stoxx Europe 600 was up 0.4% on Friday and ended the week 0.6% higher, after closing at the highest level since June 2008 on Thursday, led by rally in European banking stocks.
Asian markets were broadly higher with Japan’s Nikkei advancing 2.3% for the week to the highest level since September 2008, amid expectations for more aggressive easing measures by the Bank of Japan under the leadership of new Governor Haruhiko Kuroda.
New Zealand’s NZX 50 Index rose for a fourth week, adding 0.8% to a record, after Reserve Bank of New Zealand Governor Graeme Wheeler pledged to keep borrowing costs at a record low until next year.
Elsewhere, China's Shanghai Composite Index was up 0.4% on Friday, but ended the week 2.6% lower amid fears that new curbs on the housing market will be strictly enforced. Hong Kong's Hang Seng Index was down 0.4% Friday and was 2.4% lower for the week.
The Dow Jones industrial average fell 0.2% on Friday to finish the week with a 0.8% gain. The S&P 500 slipped 0.02% on Friday, paring back its weekly gain to 0.6%, just 0.28% below its all-time closing high hit in October 2007. The Nasdaq was down 0.32% on Friday, and ended the week just 0.15% higher.
Market sentiment was hit after data showed that the University of Michigan’s consumer sentiment index dropped to 71.8 in March, the lowest level since December 2011, from a final reading of 77.6 in February.
The disappointing data sparked profit taking ahead of an upcoming Federal Reserve policy meeting after a recent string of strong U.S. economic data reinforced optimism over the country’s economic recovery and saw the dollar strengthen across the board.
Meanwhile, U.S. inflation data indicated that the Federal Reserve had sufficient scope to continue its quantitative easing program.
The Labor Department reported that U.S. consumer price inflation rose 0.7% in February, bringing the annualized rate of consumer inflation to 2.0%.
Core consumer prices, which exclude volatile food and energy costs, also rose 2% year-on-year.
In December, the U.S. central bank said an “exceptionally low” target interest rate is appropriate as long as inflation isn’t forecast to rise to more than 2.5%.
In Europe, the benchmark Stoxx Europe 600 was up 0.4% on Friday and ended the week 0.6% higher, after closing at the highest level since June 2008 on Thursday, led by rally in European banking stocks.
Asian markets were broadly higher with Japan’s Nikkei advancing 2.3% for the week to the highest level since September 2008, amid expectations for more aggressive easing measures by the Bank of Japan under the leadership of new Governor Haruhiko Kuroda.
New Zealand’s NZX 50 Index rose for a fourth week, adding 0.8% to a record, after Reserve Bank of New Zealand Governor Graeme Wheeler pledged to keep borrowing costs at a record low until next year.
Elsewhere, China's Shanghai Composite Index was up 0.4% on Friday, but ended the week 2.6% lower amid fears that new curbs on the housing market will be strictly enforced. Hong Kong's Hang Seng Index was down 0.4% Friday and was 2.4% lower for the week.