The Dow closed lower on Friday, ending the week on a muted note. Investors are once again worried about the future of global economic growth and geopolitical developments.
The Dow (INDU) closed 0.1%, or 17 points, lower. The S&P 500 (SPX) and Nasdaq Composite (COMP) finished 0.2% and 0.5% lower, respectively.
For the week, the Dow eked out a modest 0.4%, which pales in comparison to its 4.7% jump in the prior week. The S&P and the Nasdaq rose 0.5% and 0.7% for the week, respectively, according to Refinitiv.
This week’s trading was a bit all over the place. On Monday, the Dow logged the sixth day of gains in a row for the first time in more than a year. By Wednesday, stocks had logged two days of losses and the rally was officially over.
On Friday, worries about global economic growth have cropped up in investors’ minds again after China reported weaker-than-expected industrial production numbers for May earlier on Friday. Industrial production grew at 5%, compared with the 5.5% consensus.
Stocks in China closed lower, with the Shanghai Composite (SHCOMP) finishing the week down 1%.
Against that backdrop, uncertainties about trade also continue. Hopes are high that the United States and China will make progress in trade negotiations at the G20 summit in Japan at the end of the month.
Meanwhile in the United States, retail sales grew at 0.5% in May, undercutting the forecast of 0.6%. That won’t help investors’ worries about growth.
Geopolitical risks are adding to those concerns. The United States blamed Iran for this week’s attack on two tankers in the Gulf of Oman. The attack sent oil prices higher Thursday.US oil futuressettled 0.4% higher at $52.51 a barrel on Friday.
As fear increases, prices for gold – a safe-haven investment – are rising. Gold settled at $1,340.10 an ounce, up 0.1%, after earlier today hitting its highest level since April 2018, according to Refinitiv.
IPO bonanza
On the IPO front, things are looking brighter. Pet delivery business Chewy priced its IPO late Thursday at $22 per share, raising $1 billion. The company started trading under the ticker “CHWY” today, and closed up 59% at nearly $35 per share.
It is the third IPO of the week. Cybersecurity business CrowdStrike (CRWD) debuted on Wednesday and and freelancer online platform Fiverr went public on Thursday. Crowdstrike soared more than 70% on its first day, while Fiverr climbed 90%.
Both Crowdstrike and Fiverr are down today, with their shares sliding 5% and 21.1%, respectively.
