Dow falls more than 100 points, post worst Thanksgiving week decline since 2011 as tech shares and oil fall
Michael Nagle | Bloomberg | Getty Images
A reseller works on the floor of the New York Stock Exchange (NYSE) in New York, USA, Friday 2. November 2018.
Shares were also under pressure on Friday when crude oil prices died. West Texas Intermediate futures dropped more than 6 percent to $ 51.03 per barrel, reaching its lowest level of the year.
"Technical stocks are under pressure, but more worrying is that oil prices collapse," said Peter Cardillo, economist at Spartan Capital Securities. "Lower oil prices are not a good view for the economy."
"OPEC has indicated that they are going to cut [production] but it does not help. It's a bad sign," said Cardillo.
The drop sent the Energy Select Sector SPDR Fund (XLE) – which tracks the S & P 500 energy sector – down more than 3.5 percent. Shares of Concho Resources, EOG Resources and Devon Energy led to a decrease in XLE.
The decline of the raw material comes at a time when trade tensions in the US and China have raised concerns about a possible economic downturn. The two countries have charged thousands of dollars worth each other's goods, as the Trump Administration takes a protectionist attitude towards trade.
U.S. and Chinese leaders are expected to meet at a G20 meeting in Argentina at the end of the month, although few economists expect the scheduled talks to resolve the trade dispute.
"Much of the speed has to do with tariffs and moves by the Fed," said Greg Powell, CEO of Fi-Plan Partners. "Depending on what happens in these conversations, it can change the entire dynamics of the market from a point of view . "
China's shares fell on Friday, pending trade negotiations between the US and China. Shanghai Composite dropped 2.5 percent, while the Shenzhen A Share index dropped 3.7 percent.
Retailers jumped the negative trend as SPDR S & P Retail-listed fund (XRT) increased 0.7 percent on Black Friday, one of the busiest shopping opportunities days of the year. Lands End and Etsy shares rose 5 percent and 3 percent respectively, while L Brands received more than 1 percent. Overstock, also in XRT, increased more than 25 percent after the CEO said the company would sell its retail to focus on krypto.
-CNBCs
Sam Meredith
contributed to This report. [19659016]
