Dow falls as technology stocks recover and oil plunges

Michael Nagle | Bloomberg | Getty Images

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, United States, on Friday, November 2, 2018.

Inventories were also under pressure on Friday, as crude oil prices dipped. West Texas Intermediate futures fell by more than 6% to $ 51.03 per barrel, reaching their lowest level of the year.

"Technology stocks are under pressure again, but more worryingly, oil prices are falling," said Peter Cardillo, chief market economist at Spartan Capital Securities. "The decline in oil prices is not a good sign for the economy."

"The OPEC indicated that they were going to cut [production]but it does not help. This is a bad sign, "Cardillo said.

This decline led to a decline of more than 3.5% in Energy Select Sector (XLE) SPDR, which tracks the S & P 500 energy sector. Shares of Concho Resources, EOG Resources and Devon Energy led the XLE down.

The decline in crude comes at a time when trade tensions between the United States and China have raised concerns about a possible economic slowdown. Both countries have imposed tariffs on goods worth billions of dollars, while the Trump administration takes a protectionist stance on trade.

US and Chinese leaders are expected to meet at a G-20 meeting in Argentina at the end of the month, although few economists expect the talks to resolve the trade dispute. .

"Much of the move is about the rates and the Fed's," said Greg Powell, CEO of Fi-Plan Partners. "Depending on what's going on in these discussions, it could change the whole dynamics of the market from the point of view of feelings."

Chinese stocks fell on Friday in anticipation of US-China trade talks. The Shanghai Composite fell 2.5% while the Shenzhen A Share Index lost 3.7%.

-CNBC & # 39; s
Sam Meredith
contributed to this report.