Stocks fell Friday and commodity prices declined, reflecting concerns about global issues and the possibility of a slower economy in China.
The declines came after world leaders at the G-20 summit meeting in Seoul, South Korea, came up with an agreement that fell short of the Obama administration’s goals for trade surpluses and deficits.
Investors were also apparently reacting to signs of financial pressures in Europe and to the possibility that China’s higher-than-forecast inflation rate of 4.4 percent in October could lead to measures to slow its economy.
Doug Roberts, the chief investment strategist for Channel Capital Research Institute, said that in addition to the focus on China, there were outstanding questions about the effect of the Federal Reserve’s resumption of buying Treasurys.
The Fed announced last week that it would buy government securities worth $600 billion as a way to stimulate the economy. It began the new round with a purchase of $7.23 billion in Treasury paper Friday, according to Reuters.
“What is driving everything is really the quantitative easing, and people wondering how successful it is going to be,” Roberts said of the program aimed at jolting the economy into recovery.
The Dow Jones industrial average fell 90.52 points, or 0.8 percent, to 11,192.58 Friday. The Dow was down 2.2 percent for the week but is up 7.33 percent so far this year.
The Standard & Poor’s 500-stock index declined 14.33 points, or 1.18 percent, to 1,199.21. It was down 2.2 percent for the week but is up 7.54 percent for the year.
The Nasdaq composite index, which includes many technology stocks, slid 37.31 points, or 1.46 percent, to 2,518.21. It was down 2.4 percent for the week but is up 10.98 percent so far this year.
“Nothing is a one-way bet,” said Bart Melek, a global commodity strategist for BMO Capital Markets. “Typically markets look to sell off and make some profit.”
He said one of the catalysts Friday was related to expectations that China would act after its latest inflation report, ultimately affecting its appetite for commodities.
