The fear of global growth showed its waves across Wall Street this Friday. Dow dropped by 497 points which implies a 2% drop on Friday. The S&P 500 declined by 1.9%, sinking to the lowest level since early April, whereas the Nasdaq too witnessed a decline of 2.3 %.
The market is reflecting the negative impacts of the economic and corporate movements, which is getting affected by the slow growth numbers of China and Europe. According to a private wealth management firm, something is wrong as global growth is moving at a slower pace.
Johnson and Johnson or JNJ plunged by 10%, which is a very popular defensive stock. As per the Reuters investigation, the company was aware of the fact that the asbestos-tainted the baby powders for long. In Dow, JNJ was one of the worst stocks. In fact, Friday rang the bell for the worst day of the company since 2002. However, the lawyer on behalf of the company stated that the observations are misleading and false. The comprehensive performance of Dow was also affected by the negative performance of JNJ. Also, the stocks of the company are widespread that has cleared that the impact of the downfall is widespread.
The tumbling market condition on Friday has left the market of the US in a state of loss, which reflected the condition 2 weeks in a row. The S&P 500 is down by 11% in the 4th quarter and is on the worst phase since 2011. The analysts stated that this kind of loss in the final quarter of a year is unusual. The S&P 500 has shut down 10% or more in the final part of the year since 1928. The jittery investors pulled a record of $39 billion. This includes $28 billion that has also excited the US stocks.