DJIA: 36,113.62, down 176.70
S&P 500: 4,659.03, down 67.32
Nasdaq: 14,806.81, down 381.58
Stocks slide on tech weakness; yields dip
U.S. stocks turned firmly lower on Thursday as weakness in tech shares permeated into the broader equity market. The Dow reversed a more than 200 point rally to end 176 points lower. The S&P 500 slid 1.4%, while the Nasdaq Composite slumped 2.5% to the lowest level since October. Growth-related stocks underperformed despite Treasury yields paring their recent backup, with the 10-year note rate slipping three basis points (0.03%) to 1.70%.
Eight of 11 S&P 500 sector closed in negative territory, with Information Technology and Consumer Discretionary shares lagging with a more than 2% decline. The Industrials group was a notable gainer with Boeing Company rising 3% on reports its 737 Max jets could resume service in China as soon as this month. Airlines also outperformed as Delta Air Lines Inc. said it should return to profitability this year. In earnings, KB Home jumped 16.5% after topping Wall Street’s expectations.
On the data front, weekly initial jobless claims came in at 230,000, up from the previous 207,000 figure. Another report showed producer prices edged 0.2% higher in December, below forecasts and slowing from the prior 1% advance. On an annual basis, the Producer Price Index (PPI) surged at a near record 9.7%. This follows yesterday’s reading that revealed the Consumer Price Index (CPI) jumped 7% year-over-year last month, in-line with estimates but still the fastest pace since June 1982. Meanwhile, Fed Governor Lael Brainard emphasized during her nomination hearing for Fed Vice Chair that lowering inflation back towards 2% while supporting the economic recovery will remain the central bank’s top priority.
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