NEW YORK (voa) – U.S. stocks closed sharply lower Friday, amid a selloff triggered by investor concerns over corporate profits and the health of the U.S. economy.
At the closing bell, the Dow Jones Industrial Average dropped nearly 98 points (1 percent) to end the week at 9,940.
The broad market indicator, the S&P 500, lost 18 points (nearly 2 percent) to end at 1,055.
The technology-heavy Nasdaq Composite Index dropped 50 points (3 percent) to 1,601.
In London, the Financial Times Index ended the day down 27 points (.5 percent) to 5,171, while in Paris the CAC 40 closed down 57 points (just over 1 percent) at 4,330. The DAX in Frankfurt lost 95 points (2 percent) to close at 4,872.
New York gold closed at $311 dollars, up $1.50 from Thursday.
The dollar was mixed against the other major currencies.
US Wholesale Prices Lower in April
U.S. wholesale prices dipped in April, led by the biggest drop in food costs in nearly 28 years. Prices for clothing and light trucks – including sports utility vehicles – also fell sharply.
Labor Department officials said Friday the 0.2 percent decline in the Producer Price Index (PPI) in April is the largest in four months. This represents a considerable moderation from the one percent hike in March.
The PPI measures inflation pressures before they reach the consumer and the April drop was better than many analysts had been expecting.
Analysts say this means that overall inflation remains well under control even as the economy bounces back from recession.
Citing uncertainties about the budding economic recovery, U.S. Federal Reserve policymakers on Tuesday decided to keep short term interest rates unchanged at 40 year lows.
Federal Reserve officials said with little threat from inflation they are able to wait and see whether the budding recovery blossoms later this year.
