New Yoek -
US stocks dropped Friday as the West slapped new sanctions on Russia and traders saw a higher chance the Federal Reserve next week will accelerate its timeline to raise interest rates.
The Dow Jones Industrial Average declined 61.49 points (0.36 percent) to 16,987.28.
The broad-based S&P 500 fell 11.91 (0.60 percent) to 1,985.54, while the tech-rich Nasdaq Composite Index lost 24.21 (0.53 percent) at 4,567.60.
The US and European Union unveiled new sanctions on Russian banking and energy companies, a plan that was immediately attacked by Russian President Vladimir Putin.
Solid reports Friday on US retail sales and consumer confidence “are likely fueling interest rate hike uncertainty ahead of next week's Fed meeting,” said a market note from Charles Schwab.
There is “trepidation” that the Fed “will raise interest rates sooner rather than later,” said William Lynch, director of investment at Hinsdale Associates.
Dow member ExxonMobil dipped 1.3 percent, hurt by lower oil prices and by worry that sanctions on Russia will curtail the oil giant's plans in the country. Exxon said it is assessing the sanctions and will comply with the law.
Other oil companies also fell, including Chevron (-0.9 percent) and Marathon (-1.1 percent), as well as oil service companies Schlumberger (-2.1 percent) and Halliburton (-1.8 percent).
Wireless carrier company Sprint shot up 6.5 percent after a presentation by the company's new chief executive, Marcelo Claure, drew positive reviews. Morgan Stanley called the briefing “a breath of fresh air” for outlining aggressive plans to attract customers and cut costs.
Darden Restaurants fell 1.5 percent after reporting a first-quarter loss of $19.3 million on revenues of $1.6 billion.
Activist investor Starboard Value released a plan for boosting value at the chain, in part by improving its Olive Garden restaurants. Darden said it would review the plan, but that many of the suggestions have already been implemented.
Bond prices fell. The yield on the 10-year US Treasury jumped to 2.61 percent from 2.53 percent Thursday, while the 30-year increased to 3.35 percent from 3.25 percent. Bond prices and yields move inversely. - Sapa-AFP