NEW YORK (AA) – Wall Street ended Friday and the week with losses amid a steep decline in oil prices and hawkish statements from a Federal Reserve official.
US stocks recorded their biggest daily loss since June 24 — the day after the U.K. voted to leave the EU, a move dubbed the Brexit.
A speech by Boston Fed President Eric Rosengren resulted in markets beginning the day with losses. But investors later took the remarks to heart as Rosengren has voting rights on the Federal Open Market Committee.
The Fed could “continue to pursue a gradual normalization of monetary policy” he said, which was perceived by investors as an increases likelihood the bank could raise rates later this month.
The hawkish remarks were coupled with a sharp decline in oil prices. After gains Thursday, investors held a sell-off position for short-term profits, which resulted in a more than 4 percent fall in the price of crude oil.
At the final bell, American benchmark West Texas Intermediate was down 4.1 percent to $45.86 per barrel. International benchmark Brent crude traded at $48.02 a barrel — a 4.2 percent decline.
As a result, the Dow Jones closed the day down 394 points, or a 2.1 percent loss. The S&P 500 lost 53 points, or 2.4 percent, to end at 2,127. The Nasdaq fell 2.5 percent, losing 133 points to 5,125.
On a weekly basis, the Dow lost 2.2 percent, and the S&P 500 and the Nasdaq each fell 2.4 percent, posting the market’s worst week since January.
