Stocks tumbled to end a bad week on Wall Street. The Dow Industrials (^DJI) slid nearly 300 points, the tech-heavy Nasdaq (^IXIC) lost 2%, and the broader S&P 500 (^GSPC) fell below the critical 1,800 level, losing 2% as well. The second-straight day of declines came on more fears about weakness in global economies and emerging markets.
Investors dumped foreign currencies, including the Turkish lira and the Argentine peso. The selling accelerated after a disappointing report on China’s manufacturing report on Thursday and ahead of next week’s Federal Reserve meeting, when the Fed is expected to further cut back its bond-purchase program. Treasuries rallied on a rush to safety. The yield on the 10-year (^TNX) note fell sharply as investors shifted out of the riskier emerging markets to the relative safety of U.S. government debt.
Microsoft (MSFT), Starbucks (SBUX) and Procter & Gamble (PG) bucked the downward trend in stocks. Microsoft shares were higher after the company beat earnings and revenue estimates after the close Thursday. Starbucks also rallied after the company said earnings beat estimates. Revenue also rose, but missed analysts’ estimates. Procter & Gamble missed revenue estimates as well, but beat earnings estimates by a penny and said the company was on track for full year goals.