Meanwhile, the Commerce Department said Wednesday that retail sales fell 0.3 percent in May, marking the largest one-month decline since January of last year. The sudden drop confounded economists, which had forecast a 0.1 percent gain.
Overall, U.S. economic growth slowed in the first quarter, with GDP increasing at a 1.2 percent annual rate. GDP grew at a 2.1 percent in the last quarter of 2016.
Concerns regarding the disappointing economic data come against a backdrop of hawkish monetary policy from the Federal Reserve. On Wednesday, the U.S. central bank raised rates for the second time this year and also laid out a plan to unwind its $4.5 trillion balance sheet.
Still, the three major indexes were little changed for the week. Entering Friday’s session, the Nasdaq was the only one on track for a weekly loss as large-cap tech stocks have faced selling pressure.
“The market is still overly concerned with some of the growth areas and the fact that the Fed is planning to raise rates further,” said Robert Pavlik, chief market strategist at Boston Private Wealth.
In corporate news, Amazon announced it was buying Whole Foods for $13.7 billion, or $42 a share. Shares of Kroger, Costco, Target, SuperValu, Sprouts Farmers Markets and Wal-Mart all dropped following the news.