U.S. stocks fall from record high on weak sentiment data; Dow dips 0.17%

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Investing.com - U.S. stocks fell from record highs on Friday after consumer sentiment data came in much weaker than expected, wiping out a multi-session rally fueled by hopes that U.S. economy is poised for more robust recovery.

At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.17%, the S&P 500 index ended down 0.16%, while the Nasdaq Composite index fell 0.30%.

The Thomson Reuters/University of Michigan's preliminary consumer sentiment reading for March came in at 71.8, the lowest since December of 2011 and well below analysts' calls for a 78.0 reading.

The numbers sparked a round of profit taking that sent stocks falling after a 10-day winning streak that saw that Dow Jones Industrial Average finish at record highs on multiple occasions.

Solid industrial production numbers and inflation figures failed to quell growing concerns that the stock-market rally is running out of steam.

In the U.S., the country's consumer price index rose 0.7% in February from January, more than market calls for a 0.5% increase.

The U.S. core consumer price index, which is stripped of volatile food and energy costs, rose 0.2% in February, in line with expectations.

The numbers met expectations, though output in the country's factories, mines and utilities beat forecasts last month.

The Federal Reserve reported earlier that U.S. industrial production rose by 0.7% in February after contracting 0.1% in January.

Analysts were expecting industrial production to rise 0.4% last month, though the session remained largely bearish throughout the day.

Leading Dow Jones Industrial Average performers included Bank of America, up 3.96%, Boeing, up 2.15%, and Cisco Systems, up 1.57%.

The Dow Jones Industrial Average's worst performers included JPMorgan, down 0.98%, Home Depot, down 1.54%, and AT&T, down 1.30%.

European indices, meanwhile, largely mixed.

After the close of European trade, the EURO STOXX 50 fell 0.69%, France's CAC 40 fell 0.71%, while Germany's DAX 30 finished down 0.19%. Meanwhile, in the U.K. the FTSE 100 finished down 0.61%.

On Thursday, the U.S. is to release government data on producer price inflation, a leading indicator of price stability, and the weekly government report on initial jobless claims.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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