Stocks ended a lackluster week with a moderate decline Friday as higher oil prices weighed on investors’ already rickety sentiment.
NEW YORK (AP) — Stocks ended a lackluster week with a moderate decline Friday as higher oil prices weighed on investors’ already rickety sentiment and Treasurys rallied amid concerns about a meltdown in the subprime mortgage market.
It was the worst week for the Dow Jones industrials since mid-August. The broader market indexes were mixed for the week.
The pullback followed several mixed sessions in which the tech-dominated Nasdaq composite index showed slight gains but blue chip stocks have pulled back in part amid inflation concerns. Oil settled at its highest level of the year Friday, eclipsing a high for the year set Thursday.
Bond prices rose Friday, rebounding from a sell-off a day earlier, as investors sought quality amid concerns that subprime lenders would be forced to book big write-downs for consumers who were unable to keep up with payments. The yield on the benchmark 10-year Treasury note fell to 4.68 percent from 4.73 percent late Thursday.
“The defaults that you’re seeing in the subprime market are a bit of a wake-up call for investors. I think you’re going to see a continued flight to safety,” said James Sonneborn, wealth manager at RegentAtlantic Capital LLC.
According to preliminary calculations, the Dow Jones industrial average fell 38.54, or 0.30 percent, to 12,647.48.
Broader stock indicators also fell. The Standard & Poor’s 500 index fell 5.19, or 0.36 percent, to 1,451.19, and the Nasdaq slipped 9.84, or 0.39 percent, to 2,515.10.
The dollar was mixed against other major currencies, while gold prices rose.
Light, sweet crude settled up 19 cents at $61.14 on the New York Mercantile Exchange.