Rally on Wall Street looks like it’s ending

Associated Press

NEW YORK

After almost 10 years, Wall Street’s rally looks like it’s ending.

Another day of big losses Friday left the U.S. market with its worst week in more than seven years. All of the major indexes have lost 16 to 26 percent from their highs this summer and fall. Barring huge gains during the upcoming holiday period, this will be the worst December for stocks since 1931.

There hasn’t been one major shock that has sent stocks plunging. The U.S. economy has been growing since 2009, and most experts think it will keep expanding for now. But it’s likely to do so at a slower pace.

As they look ahead, investors are finding more and more reasons to worry. The U.S. has been locked in a trade dispute with China for nine months. Economies in Europe and China are slowing. And rising interest rates in the U.S. could slow its economy even more.

Stocks are now headed for their single worst month since October 2008, when the market was being battered by the global financial crisis.

December is generally the strongest time of the year for U.S. stocks. Traders often talk about a “Santa rally” that adds to the year’s gains as people adjust their portfolios in anticipation of the year to come.

But not this year.

No sector of the market has been spared. Large multinational companies join smaller domestic ones in their losses. And huge high-tech companies, once the best-performing stocks on the market, are now leading the way lower.

The major U.S. indexes fell 7 percent this week, and they’ve sunk more than 12 percent in December.