(Reuters) – US stocks fell as technology-related stocks fell for a second day on Thursday and appeared at higher levels of weekly worthless claims as government data.
Amazon.com Inc. AMZN.O 2.3% and Apple Inc. dropped AAPL.O Fell 1.6%, making them the biggest drugs on the S&P 500 and Nasdaq. Last week, the Nasdaq loss put the index 10% below its closing record, leading to an improvement on Sept 2.
“It’s a good recovery, characterized by some good technical names,” said Jake Dollarhide, chief executive of Longbow Asset Management in Tulsa, Oklahoma, from the March market upswing.
“They had the last week of August, and I think it’s a rational profit-taking scenario at the moment.”
Last week, all three major US stock indices posted a second straight week of decline as investors sold technology-related names that powered the S&P 500 to record dramatically higher than the March lows.
Dollarhide said he expected tech-related names to bounce back before the end of the year.
Heavy Weighted S&P 500 Technology Index .SPLRCT The benchmark index was the hardest, falling 0.8% on the day. S&P 500 Real Estate Sector .SPLRCR And financial .SPSY Also sold fast. Real estate was down 2.2% and financials fell by 1%.
Adding to concerns about the stalling recovery, the Labor Department report showed that while fewer Americans filed new claims for unemployment benefits last week, the number remained at an extremely high level.
The Federal Reserve on Wednesday promised to keep interest rates low for a longer period to help the world’s largest economy recover from an epidemic-induced recession.
Dow jones industrial average .DJI Fell 130.4 points or 0.47% to 27,901.98, the S&P 500 .SPX The Nasdaq Composite declined by 3,357.01 and declined by 28.48 points or 0.84%. .IXIC It fell 140.19 points or 1.27% to 10,910.28.
Fed Chair Jerome Powell laid out a menu of several factors – including disparities in wage growth, workforce participation and minority unemployment relative to minorities – before being satisfied as the Fed would see employment in the maximum economy, and even That would consider raising interest rates.
Dollarhide said, “Investors love when the Fed rate is low, because they think it’s good for the market.” “But if the Fed says that we need to keep the rates longer, people start worrying about the economy.”
General Electric Co. GE.N The 4.4% growth came a day after Chief Executive Officer Larry Kallp said the company’s free cash flow would turn positive in the second half.
Ford Motor Company Fn A 3.7% increase as it said it had started production of the new generation F-150 pickup truck at its Michigan facility.
Dismissing issues on the NYSE moving from a 1.61-to-1 ratio; On the Nasdaq, a 1.36-to-1 ratio preferred decliner.
The S&P 500 posted 9 new 52-week highs and no new lows; The Nasdaq Composite recorded 38 new highs and 18 new lows.
The volume was 9.70 billion shares on US exchanges with a 9.47 billion average for the full session in the last 20 trading days.
Additional reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Sagarika Jaisinghani, Shaunak Dasgupta and David Gregorio