The index closed on Friday by almost 1% or 256 points lower. During the week, the Dow fell 0.2%.
China's Slower Growth
A slowdown in China, one of the world's major engines of growth, is not a good sign for the global economy. At the same time, China's economic growth has been steadily losing momentum for years as the country moves from an export-driven emerging economy to a more consumer-oriented economy. This means that the GDP figure on Friday was not too surprising.
Technology stocks performed particularly poorly on Friday as many American tech companies rely on China's fast-growing middle class for their earnings and revenue growth.
Nevertheless, the sell-off on Friday faded in comparison to some days marked by headlines.
Trading has been the main driver of the market for months. And after the United States and China agreed a first phase of a trade agreement last week, part of the uncertainty has been eliminated. Of course, the deal is not yet signed, but after months of stock market rallies and sell-outs, the tentative agreement is indicative of stability.