|U.S. Stocks Ring Up Weekly Loss; Biotech Sector Routed|
|By Mark DeCambre - MarketWatch's Markets Editor|
|Saturday, 26 September 2015 20:40|
U.S. stocks ended the week with a whimper, turning big opening gains in the S&P 500 and Nasdaq Composite into losses by the conclusion of Friday’s session.
A sharp selloff in biotech and health-care stocks spread to broader markets, weighing on sentiment.
All three main indexes booked weekly losses, even as the Dow Jones Industrial Average eked out a gain on Friday, largely thanks to a 8.9% jump in Nike Inc. shares, which contributed 68 points to the blue-chips benchmark.
“A selloff in biotechs took the wind out of the rally. And in this low-volume environment traders are selling first and asking questions later,” said Ryan Larson, head of equity trading, U.S. RBC Global.
The iShares Nasdaq Biotechnology ETF IBB, -4.90% plunged 4.9%, wrapping a bruising week for the sector with a 13% weekly loss. The S&P 500 health-care sector lost 5.8% over the week and closed below the lows reached on Aug 24.
“The health-care sector closed below the Aug. 24 lows. It does not bode well for sentiment when a former leader in the market is now leading on the downside,” Larson said.