US STOCKS-Chipmakers lead Wall St selloff; S&P lowest since May
By Rodrigo Campos
NEW YORK Oct 10 (Reuters) - The S&P 500 and Nasdaq on Friday posted their largest weekly declines since May 2012 and the Dow turned negative for the year, led down by technology stocks after a chipmaker warned of a major pullback in the industry.
The S&P closed at its lowest level since late May and right at its 200-day moving average, a key technical indicator it has not breached since late 2012. The moving average also coincides with an intraday low hit early in August.
The week's selloff had various catalysts, analysts said, though none were new to the market. Some pinned the slide to concern about the Federal Reserve's imminent ending of its asset purchases stimulus, as well as worries about weak economic growth, especially in Europe, and its effect on U.S. earnings.
Underscoring the headwind that Europe is becoming for economic growth, Standard & Poor's on Friday lowered France's credit outlook. The negative action comes after a week of weak data out of Germany, the continent's largest economy.
Technical indicators were also to blame.
The broad selling "has been more technical in nature," said Brian Lazorishak, senior quantitative analyst and portfolio manager at Chase Investment Counsel in Charlottesville, Virginia.
He said the 200-day moving average of the S&P 500, now near 1,905, "should be a pretty decent support level. You may very well undercut that somewhat for a few days ... but there's strong support at 1,900." Continuación...