The decline on Wall Street resumed again on Friday night, where major indices fell in fear of a slowdown in the US economy, after disappointing employment figures in November. The renewed trade tensions between the United States and China could further worsen the pressure on economic activity. The technological and financial stocks were particularly attacked.
Investors paid attention to Canada where financial director Meng Wanzhou from the Chinese tech company Huawei was arrested. It became clear that the US wanted to try it for fraud with regard to violating an embargo against Iran.
Investors also digested the important US job report. The number of new US jobs in November fell by 155,000 jobs. Also the job growth in October was adjusted downwards. The job report plays an important role in the interest policy of the Federal Reserve, the central bank. It showed that the growth of American employment has weakened considerably. A decision by the OPEC to limit oil production also received plenty of attention.
The leading Dow-Jones index closed 2.2 percent lower at 24,388.95 points. The broad S & P 500 yielded 2.3 percent to 2633.08 points. Technology index Nasdaq fell 3.1 percent to 6969.25 points. Over the week as a whole, the three US indices lost 4.5% (DJIA), 4.6% (S & P 500) and 4.9% respectively. NASDAQ marked it worst weekly performance since March. With a 14% decline from its August record, the Nasdaq fell this week in the correction zone, as well as the S & P 500 with a -10.1% drop from its high, while the Dow Jones (-9%) is also close to enter its correction zone.
Furthermore, the OPEC oil cartel, together with allies like Russia, decided to limit oil production by 1.2 million barrels per day. That is more than what was expected on average and as a reaction the oil prices went up considerably. A barrel of American oil rose 1.8 percent in price to $52.40. Brent oil gained 2.4 percent to $61.48 per barrel.