Stocks cut gains on Friday after Apple said it will reclose some stores given recent spikes in coronavirus cases.
The Dow Jones Industrial Average was down 173 points, or 0.7%, after starting the session with a more than 300-point gain. The S&P 500 traded 0.5% lower while the Nasdaq Composite dipped 0.2%.
The tech giant said a total of 11 stores will be closed in Florida, Arizona, South Carolina and North Carolina. Apple had previously closed all its stores around the world amid the initial coronavirus outbreak. Both Florida and Arizona — along with California and Texas — have seen record spikes in coronavirus cases recently.
Apple shares traded 0.9% lower on the news. Earlier in the day, they hit an all-time high.
“Apple re-closing stores after re-opening many of these stores over the past month is a worrisome trend that speaks to the volatility and fluidity of this COVID environment as Cupertino (and other retailers) will continue to be cautious,” said Dan Ives, an analyst at Wedbush Securities, in a note.
Trading was also volatile on Friday ahead ahead of the S&P 500’s first rebalancing of 2020. These events are usually associated with choppier trading as index and exchange-traded funds tracking the S&P 500 have to adjust for the benchmark’s changes.
Stocks started the day with strong gains after a report by Bloomberg News said that China was set to up its purchases of U.S. farm products to comply with phase one trade deal. The report eased concerns about U.S.-China trade relations as the two countries exchange heated rhetoric regarding the coronavirus.
For the week the major averages were on pace to post their fourth weekly gains in five. The Dow and S&P 500 were each up at least 1% week to date while the Nasdaq has risen 3.5%. Those gains came after a record surge in U.S. retail sales and the Federal Reserve announcing it will buy individual corporate bonds.
“Retail sales V-bound, employment V-bounds, equities V-bound and meanwhile central banks continue to underpin just about everyone and their mother. What is not to like?” said Andreas Steno Larsen, a strategist at Nordea Markets, in a note.
CNBC’s Yun Li contributed reporting.
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