Investing.com – Wall Street failed to follow other global stocks higher on Friday as investor sentiment returned to bearish territory with Apple (NASDAQ:AAPL) and Merck (NYSE:MRK) leading stocks lower on the Dow and market players on the sidelines waiting for new signals from the Federal Reserve (Fed).
At 15:10GMT or 11:10AM ET, the Dow 30 fell 97 points, or 0.55%, the S&P 500 traded down 12 points, or 0.57%, while the tech-heavy NASDAQ Composite lost 46 points, or 0.95%.
Having broken a five-day losing streak on Thursday, U.S. stocks were unable to muster enough buyers to continue gaining ground, despite the general move forward in other global equities that took heart in increased optimism over the outcome of the upcoming U.K. referendum on its membership in the European Union (EU).
The tragic murder of Jo Cox, lawmaker of the British Labour Party, and supporter of the Remain campaign on Thursday made British politicians decide to suspend campaigning for the June 23 vote on the U.K.’s membership in the European Union (EU) on both Thursday and Friday.
While several polls throughout the week showed the preference to leave the EU, known as a Brexit, taking the lead, some experts suggested that Cox’s death may spur sympathy for the Remain campaign and turn the tide.
However, Wall Street looked past the speculation on Friday and came under pressure from the likes of Merck and Apple that let the Dow lower.
Investors appeared to lock in profits on the drug maker after the firm ended the prior session at the head of the blue-chip index with gains of 2.5%.
Apple was hit by news that a Beijing property rights regulator had banned sales of its iPhone 6 models.
In positive news off the Dow, Oracle (NYSE:ORCL) gained more than 2% after reporting better than expected earnings.
Revlon Inc (NYSE:REV) jumped almost 9% after announcing a $420 million purchase of Elizabeth Arden.
The economic calendar was light with mixed housing data.
Housing starts fell less than expected in May, but building permits, a more forward looking indicator, missed consensus.
St. Louis Fed chief James Bullard revealed himself to be the most dovish member of the U.S. central bank, admitting that he was the “dot” that saw only one rate hike this year and no more in either 2017 or 2018.
Bullard was the first of the Fed officials to speak after the end of the blackout period for the prior meeting.
Eyes will remain on the Fed for any shift in their outlook for monetary policy, but few indications were expected for the short term.
The following week Fed chair Janet Yellen was scheduled to speak before the U.S. Congress in her semi-annual testimony on both Tuesday and Wednesday.
Nevertheless, it would be hard to expect any chance in her stance since the recent meeting, particularly as it comes prior to the Brexit referendum vote.
With the Fed fund futures discounting exactly a 50% chance of the next rate hike taking place in February 2017, the dollar moved to one-week lows against rivals on Friday.
Meanwhile, oil prices bounced back on Friday after a six-day slide as a reduction in Brexit jitters found investors moving back into riskier assets.
Market participants looked ahead to oilfield services provider Baker Hughes’ data on the number of rigs drilling for oil in the U.S.
The number increased by three last week to 328, the second straight weekly rise, fueling speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
U.S. crude futures gained 2.62% to $47.42 by 15:11GMT, or 11:11AM ET, while Brent oil traded up 2.84% to $48.53.