After moving sharply higher over the course of the previous session, stocks gave back some ground over the course of the trading day on Friday. A disappointing batch of U.S. economic data weighed on the markets following yesterday's rally.
The major averages moved roughly sideways in afternoon trading, stuck firmly in negative territory. The Dow ended the day down 105.90 points or 0.7 percent at 15,070.18, the Nasdaq dropped 21.81 points or 0.6 percent to 3,423.56 and the S&P 500 slipped 9.63 points or 0.6 percent to 1,626.73.
With the losses on the day, the major averages all moved notably lower for the week. The S&P 500 fell by 1 percent, while the Dow and the Nasdaq slid by 1.2 percent and 1.3 percent, respectively.
The pullback by stocks was partly due to the release of a report from the Federal Reserve showing that industrial production unexpectedly came in unchanged in May.
The Fed said industrial production came in flat in May following a revised 0.4 percent decrease in April. Economists had expected production to rise by 0.2 percent.
Rob Carnell, chief international economist at ING, said, "The headline production figure would have been better but for another drag from utilities, and we expect some bounce from this sector in the coming months."
"Nonetheless, this was not a great figure, and reinforces our sense that the run of data in the U.S., though stronger than might have been expected some months ago, is rather mixed," he added.
A separate report from Thomson Reuters and the University of Michigan showing an unexpected deterioration in consumer sentiment in June added to the negative sentiment.
Selling pressure was also generated by news that the International Monetary Fund lowered its outlook for U.S. economic growth in 2014.
The IMF said it now expects the U.S. economy to expand by 2.7 percent in 2014 compared to the 3 percent growth that it forecast in April. The lender reaffirmed its forecast for 1.9 percent growth in 2013, although that would reflect a slowdown from the 2.2 percent growth seen in 2012.
"The United States could spur growth by adopting a more balanced and gradual pace of fiscal consolidation, especially at a time when monetary policy has limited room to support the recovery further," the IMF said.
Sector News
Gold stocks saw considerable weakness on the day, dragging the NYSE Arca Gold Bugs Index down by 1.7 percent. The losses by gold stocks came despite an increase by the price of the precious metal.
Significant weakness also emerged among biotechnology stocks, as reflected by the 1.6 percent loss posted by the NYSE Arca Biotechnology Index.
Myriad Genetics (MYGN) helped lead the biotech sector lower, falling by 13.8 after yesterday's Supreme Court ruling rejecting patents on naturally-occurring human genes.
Banking stocks also showed a notable move to the downside, resulting in a 1.6 percent drop by the KBW Bank Index. KeyCorp (KEY) and SunTrust (STI) turned in two of the sector's worst performances.
Steel, electronic storage, and oil stocks also came under pressure on the day, moving lower along with most of the other major sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index surged up by 1.9 percent following yesterday's sell-off, while Hong Kong's Hang Seng Index rose by 0.4 percent.
The major European markets also moved to the upside on the day. While the German DAX Index advanced by 0.4 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index edged up by 0.2 percent and 0.1 percent, respectively.
In the bond market, treasuries ended the day firmly positive, extending yesterday's upward move. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.8 basis points to 2.126 percent.
Looking Ahead
Next week, all eyes are likely to be on the Federal Reserve's monetary policy meeting on Wednesday. While the Fed is not expected to announce an immediate change in policy, traders will closely examine the accompanying statement for signs of when the central bank will scale back its stimulus.
Several key economic reports are also scheduled to be released next week, including reports on housing starts, consumer prices, and existing home sales, although the data is likely to be overshadowed by the Fed meeting.
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Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.