NEW YORK — U.S. stocks limped to a small loss Friday, capping a rough week that has seen the major indexes back into the red for the year on renewed signs of slowing economic growth.
The Dow Jones industrial average fell 16.80 points, or 0.16 percent, to 10,303.15, extending a four-day slide that’s seen the blue-chip index fall 3.3 percent this week.
The slump came as weak economic data and a gloomy Federal Reserve statement lent more credibility to fears that the flagging economic recovery could turn into a double-dip recession.
Investors “got a big jolt from the Fed this week that just shifted positions dramatically from just two weeks ago when they felt that the economy was gaining some traction,” said Bruce Bittles, chief investment strategist at Robert W. Baird.
The market’s retreat was a stark reminder of the Fed’s power to affect confidence, said Albert Meyer, portfolio manager for the Mirzam Capital Appreciation Fund. With the recent spate of downbeat news, he added, the danger is that “we keep talking ourselves into a recession.”
The Standard & Poor’s 500 Index slipped 0.4 percent to 1,079.25, while the Nasdaq Composite Index declined 0.77 percent to 2,173.48.
Tech stocks, along with consumer-discretionary shares, were the worst-performing sectors on Friday. J.C. Penney shed 4.7 percent after the retailer swung to a profit in the second quarter but offered cautious earnings and revenue forecasts. Nordstrom and Urban Outfitters followed, shedding 7.2 percent and 2.3 percent, respectively.
Stock-trading volume was notably thin, reflecting the generally quiet summer as well as tepidness about the market’s direction. About 3.4 billion shares changed hands in NYSE Composite volume, well off the average 5.4 billion shares.
Investors instead were attracted to the safety of the dollar and Treasurys. The U.S. dollar index, reflecting the U.S. currency against a basket of six others, climbed. Treasurys rose, pushing the yield on the 10-year note below 2.7 percent.
“People want certainty right now, and it’s hard to find,” said King Lip, chief investment officer at Baker Avenue Asset Management.
