US stocks tumbled to the lowest level in 17 months to close their worst week since August 2011, with all sectors losing ground and a strong stock sale of technology, dragging Nasdaq indexes into a bear market. Treasury bonds have soared.
The large volume triggered by the simultaneous maturing of futures and options affected stocks, which have been under pressure during the week due to concerns about rising interest rates and the threat of slower global growth. The renewed turmoil among White House officials and the growing likelihood of a government shutdown heightened investors' anxiety before the holiday.
Dovish comments from a Federal Reserve official pushed the S & P 500 early, but renewed sales of some of the biggest bulls in the bull market drove the index down. It is now down 17% from its record.
Nasdaq indexes were even worse: each fell more than 2% on Friday, so losses since the summer records exceeded 20%. All members of the FANG cohort lost more than 2.5%; Twitter dropped more than 6 percent. Cboe's volatility index, known as the "fear indicator," has risen above 30 to reach its peak in 10 months. The dollar advanced after China's announcement of a softer monetary policy, and bonds declined across Europe.
"It's a convergence of many factors, from global growth to quantitative adjustment issues, as well as political risk in the US and around the world," said Chad Morganlander, portfolio manager at Washington Crossing Advisors. "It's incredible, it's the opposite of what I had in 2017. There's no need for investors to go up until some of these problems seem to subside."
The MSCI Asia Pacific index fell for the fourth time in six sessions. The Stoxx Europe 600 index closed with few changes.
Treasuries rose, but European bonuses fell before the holiday season. The dollar was up against the yuan and most major currencies as key policy makers said "significant" cuts in taxes and duties would be set by 2019 and signaled a softer monetary policy. These are the most recent movements of the leaders of the world's second largest economy, facing an internal slowdown and a trade war with the US.
Elsewhere, orders for US factory mills fell in November, so they are out of sync with rising forecasts and signs are mounting that demand is slowing amid the risks of the trade war with China. China