The Dow recorded a second-straight weekly gain despite coming under pressure Friday, led by a rout in tech and concerns that global economic growth was running out of steam.
The Dow Jones Industrial Average fell 0.77%, the S&P 500 fell 0.94%, while the Nasdaq Composite fell 1.65%.
Tech wreaked havoc on Wall Street as investors continued to bail on FAANG stocks in favor of defensive corners of the market on concerns slowing Chinese economic growth, party driven by the U.S.-China trade war, could hurt economic growth.
Comments on trade from White House trade advisor Peter Navarro poured cold water on optimism a resolution could be sought at the month-end G-20 meeting between Trump and Chinese President Xi Jinping.
"If there is a deal -- if and when there is a deal, it will be on President Donald J. Trump's terms. Not Wall Street's terms," Navarro said
Among the FAANG stocks, Apple (NASDAQ:AAPL) and Netflix (NASDAQ:NFLX) were the hardest hit, with the latter closing more than 4% lower.
Weakness in Apple comes despite an upbeat note from Morgan Stanley earlier this week, in which the Wall Street bank waxed lyrical about the company's growing services business and upgraded its price target on the iPhone maker's shares to $253 from $226.
Apple's services business it set to exceed past expectations, partly because its iCloud business is already bigger than previously estimated, Morgan Stanley said.
The slump in tech was exacerbated by wave of selling across chip stocks on the heels of bearish quarterly results from key apple supplier Skyworks Solutions (NASDAQ:SWKS). Micron (NASDAQ:MU), Intel (NASDAQ:INTC) and Broadcom (NASDAQ:AVGO) closed in the red.
In sign of skittish sentiment on risk, defensive corners of the market like consumer staples, which includes makers of household needs like food, beverages and personal care products, were in favor posting gains for the day.
Monster Beverage Corp (NASDAQ:MNST), Campbell Soup Company (NYSE:CPB) and Colgate-Palmolive Company (NYSE:CL) led the charger higher for for consumer staples.
