Thursday, March 4, 2021
Home Business Dow Off Lows but Under Pressure as Tech Bloodbath Continues

Dow Off Lows but Under Pressure as Tech Bloodbath Continues

© Reuters.

By Yasin Ebrahim – The Dow moved off lows on Thursday, as big tech cut some of its losses but still remained deep in the red as investors digested economic data pointing to signs of a slowdown in the recovery at a time when hopes fade for further government stimulus.

The fell 0.63%, or 177 points. The was down 0.63% while the slipped 1.56%.

Weaker-than-expected labor and housing market raised concerns that the pace of the recovery could be on the wane, prompting investors to rein in their bullish bets on stocks.

Initial jobless claims came in at 860,000 on a seasonally adjusted basis in the week ended Sept. 12, the Department of Labor said Thursday. That was below the 893,000 reading from the prior week, but missing economists’ forecast for a reading of 850,000.

“The downward trend in regular state initial jobless claims – that is, the headline number – has slowed to a crawl in the past couple of weeks,” Pantheon Macroeconomics said in a note.

The Commerce Department, meanwhile, reported an unexpected 76,000 decline in housing starts as activity was hurt by Hurricane Laura and Tropical Storm Marco.  While the Philly Fed headline sentiment index, a key gauge of manufacturing activity, fell to a reading of 15, in-line with estimates.

Against the backdrop of a slowing economy, big tech continued its selloff, with Facebook (NASDAQ:) leading the decline, falling more than 3%. Apple (NASDAQ:) Microsoft (NASDAQ:), (NASDAQ:) and Alphabet (NASDAQ:) also fell.

Cloud company Snowflake (NYSE:), which more the doubled on its public market debut a day earlier fell 10%.

Financials continued to struggle, with Citigroup (NYSE:), Goldman Sachs (NYSE:) and JPMorgan Chase & Co (NYSE:) down more than 1% amid worries that the Fed’s pledge to keep rates at near-zero until 2023 will continue to hamper net interest margin.

Materials sidestepped the broader market weakness as Mosaic (NYSE:) surged more than 6% rebounding from weakness over the last few days after the company reported weaker revenue in August.

In other news, Dave & Buster’s Entertainment (NASDAQ:) slumped 27% after the company warned it could be forced into bankruptcy if an agreement can’t be reached with its creditors, The Wall Street Journal reported.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

How to Get a Peloton-Style Workout Without Splurging

Lisa Whitney, a dietitian in Reno, Nev., came across the deal of a lifetime about two years ago. A fitness studio was going...

Tesla could become one of the most valuable software companies, UBS says

Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China January 7, 2020.Aly Song | ReutersTesla's...

Anthony Fauci Pleads: Don’t Declare Victory

The Covidologist-in-chief says we can’t relax on masks and social distancing yet. Hear that, Texas? Source link

Oppo F19 Pro+, F19 Pro India Launch Set for March 8, Specifications Leak

Oppo F19 Pro+ and Oppo F19 Pro launch in India is set for March 8, the company has announced. Meanwhile, specifications and renders...

Recent Comments

Close Bitnami banner