The Nasdaq Composite closed lower on Friday, pressured by further losses in artificial intelligence stocks, and posted a loss as new economic data reinforced investor fears of a slowdown.
The technology index fell by 0.21% and ended at 23,004.54. In contrast, the S&P 500 and Dow Jones Industrial Average slowly returned to the green. The broad index gained 0.13% to close at 6,728.80, while the 30-share index added 74.80 points, or 0.16%, to end at 46,987.10. At their daily lows, the Nasdaq retreated 2.1%, while the S&P 500 and Dow fell 1.3% and more than 400 points, or roughly 0.9%.
Stocks fell from record lows after Senate Minority Leader Chuck Schumer, Democrat of New York, offered Republicans a new plan to end the record-breaking US government shutdown. Under the proposal, short-term funding would be provided for federal government operations in exchange for a one-year extension of the Affordable Health Care Act’s enhanced tax credits.
Amidst the shutdown, concerns have grown among investors about the strength of the US economy, SEEbiz reports. A University of Michigan survey found on Friday that consumer sentiment is near an all-time low. The data comes just a day after the firm Challenger, Gray & Christmas reported that layoff announcements in October hit the highest level for the month in 22 years.
Investors are getting little economic data due to the ongoing shutdown. The Bureau of Labor Statistics was supposed to publish a report on non-agricultural jobs on Friday. However, for the second month in a row it cannot do so. Economists polled by Dow Jones had expected the report to show a decline of 60,000 jobs and a rise in the unemployment rate to 4.5%.
