On Friday, stocks were down and posted their largest decline during a week since June, as jittery investors focused on when the scale back of stimulus would start by the Federal Reserve.
All but on sector index of the 10 in the S&P 500 were lower. J.C. Penney stock took a hit of 5.8% to end at $12.87 and was the biggest percentage decliner on the S&P 500. The biggest single investor in the retailer, Bill Ackman, urged the board at the retailer to replace the current chairman.
The Dallas president of the Federal Reserve Bank, Richard Fisher reiterated on Thursday that the U.S. central bank would most likely begin cutting back its massive buying stimulus of bonds in September, as long as there was continuing improvement in economic data.
The lack of clarity over the plans by the Fed has given investors more reasons to pull over $3.27 billion from funds based in the U.S. that hold the Treasuries in the past week ended on August 7.
The Dow was off by 72.81 points on Friday to end the week at 15,425, while the S&P 500 index dropped 6.06 points and the Nasdaq Composite was off by 9.02 points to end the week at 3,660.11.
Stocks, for this week, posted their largest declines since the middle of June. The Dow was off 1.5%, snapping a string of gains that extended six weeks. The S&P 500 was off 1.1% for the week, while the Nasdaq dropped 0.8%.
Just last week, the Dow along with the S&P 500 ended their weeks at all time record highs for closing.
President Obama said it would not be until this fall when he picks a new chairman for the Federal Reserve Bank, as current Chairman Ben Bernanke will end his two four year terms in January.