sunny.png
Friday March 5th, 2021 2:28PM

Stocks sink worldwide; Dow drops 500 points in early trading

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Stocks are falling in early Thursday trading on Wall Street as the market’s see-saw week snaps sharply back downward.

The S&P 500 was 1.5% lower after the first 30 minutes of trading, following steeper losses in Europe and milder ones across much of Asia. Treasury yields also fell in a sign of increased caution, while gold ticked down from its record level.

The Dow Jones Industrial Average was down 503 points, or 1.9%, at 26,036, as of 10 a.m. Eastern time, and the Nasdaq composite was down 1%.

The losses come after a report showed that layoffs are continuing at their stubborn pace across the country, denting hopes that the economy can recover nearly as quickly as it plummeted into recession. A separate report on Thursday showed that the U.S. economy contracted at a nearly 33% annual rate in the spring, the worst quarter on record.

Markets worldwide had already turned lower before those reports were released. An earlier report showed that Germany’s economy, Europe’s largest, suffered through its worst quarter on record during the spring, a contraction more than twice as sharp as during the Great Recession

The losses for markets accelerated following the U.S. data reports, as well as a tweet from President Donald Trump suggesting the United States delay its presidential election in November, though that would require an act of Congress to do.

Thursday’s loss for the S&P 500 also nearly mirrors its jump from the day before, when the Federal Reserve pledged to keep interest rates at their record low but highlighted how uncertain the path is for the economy, and how it’s mostly dependent on what happens with the coronavirus pandemic. If the market stays at its current level, it would be the second time that the index has flip-flopped this week.

Energy stocks had some of the market's sharpest losses, dropping in concert with oil prices amid worries about weaker demand amid a struggling global economy. Exxon Mobil dropped 4.5%, and ConocoPhillips lost 9.5%.

Financial stocks were also weak, hurt by a drop in interest rates that reins in the profits to be made from lending. JPMorgan Chase fell 3.4%, and Citigroup lost 4.9%

Technology stocks held up better than the rest of the market, as they have through the pandemic. The sector fell 1.2% in Thursday morning trading, less than half the decline of financial stocks.

Four of the biggest tech-oriented companies are scheduled to report their latest quarter results after trading ends. Amazon, Apple, Facebook and Google’s parent company are all up more than 12% this year, when the S&P 500 is down 0.2%. Amazon is up more than 60%.

Investors have continued to flock to such stocks on expectations that sales for the companies will continue to explode as the pandemic accelerates life’s shift toward online. But with great expectations also comes the possibility of great disappointment, and discouraging reports from the four would have big effects on the market. They alone account for nearly 16% of the S&P 500 by market value.

Investors are also continuing to wait for signs of progress from Capitol Hill, where Congress is debating how and whether to offer more aid for the economy ravaged by the pandemic. An extra $600 in weekly unemployment benefits from the federal government is about to expire, and that cash is growing in importance as the number of laid-off workers ticks higher.

A little more than 1.4 million U.S. workers applied for unemployment benefits last week, according to a Thursday report from the Labor Department. That's up by 12,000 from a week earlier.

The yield on the 10-year Treasury fell to 0.54% from 0.58% late Wednesday. It tends to move with investors’ expectations for the economy and inflation.

Gold pulled back a bit from its record heights, offering at least a pause to its huge rally amid a weakening dollar, rock-bottom interest rates and worries about the economy. It fell 0.3% to $1,947.20 per ounce.

Benchmark U.S. crude dropped 2.2% to $40.37 per barrel. Brent crude, the international standard, lost 1.9% to $43.27 per barrel.

In European stock markets, Germany's DAX lost 3.5%, and France's CAC 40 dropped 2.1%. The FTSE 100 in London was down 2.5%.

In Asia, Japan's Nikkei 225 slipped 0.3%, South Korea's Kospi added 0.2% and Hong Kong's Hang Seng dropped 0.7%. Stocks in Shanghai slipped 0.2%.

  • Associated Categories: Associated Press (AP), AP National News, Top General short headlines, AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Utilities
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Stocks sink worldwide; Dow drops 500 points in early trading
Stocks are falling in early Thursday trading on Wall Street as the market’s see-saw week snaps sharply back downward
10:15AM ( 7 minutes ago )
Trump floats November election delay - but he can't do that
President Donald Trump is for the first time floating a “delay" to November's presidential election
10:04AM ( 19 minutes ago )
Pompeo says threats to US in Afghanistan raised with Russia
Secretary of State Mike Pompeo says he and his team have warned Russian officials about all threats that Russia poses to Americans and U.S. interests in Afghanistan and elsewhere
10:03AM ( 19 minutes ago )
Associated Press (AP)
Trump floats election 'delay' amid claim of voting fraud
President Donald Trump is for the first time floating a “delay" to November's presidential election
9:45AM ( 37 minutes ago )
Stocks sink after US, Germany report record economic drops
Stocks are falling in early trading on Wall Street Thursday after the U.S. and Germany reported record contractions in their economies in the second quarter as the coronavirus pandemic led to widespread shutdowns
9:43AM ( 39 minutes ago )
US agents in Portland to pull back, but tensions remain
The Trump administration and Oregon leaders declared victory after it was announced that U.S. agents guarding a federal courthouse during violent demonstrations in Portland will pull back, but it wasn’t clear the agreement will reduce tensions that have led to more than two months of protests
9:32AM ( 50 minutes ago )
AP National News
2 grim reports are expected on virus' damage to US economy
The government is poised to deliver a double-dose of sobering news — on the devastation the coronavirus caused the U.S. economy last quarter and the damage it continues to inflict on the job market
7:26AM ( 2 hours ago )
After 99 days of success, virus returns to haunt Vietnam
A week ago, Vietnam seemed to have defeated the coronavirus
6:51AM ( 3 hours ago )
Asia Today: 723 cases in Australia, closures in Vietnam
Australia’s coronavirus hot spot, Victoria state, will make masks compulsory statewide after reporting a record 723 new cases
6:26AM ( 3 hours ago )
Top General short headlines
Huawei overtakes Samsung as top smartphone seller: report
A technology research firm says Huawei has overtaken Samsung to become the world’s biggest smartphone seller, as its home market in China emerged from the coronavirus pandemic better off than other economies
9:24AM ( 59 minutes ago )
The Latest: Health officials recommend face shields, masks
Trump administration health officials say there is evidence to support wearing face shields to protect oneself from the coronavirus
9:13AM ( 1 hour ago )
1.4 million seek jobless aid as virus surges in South, West
More than 1.4 million laid-off Americans applied for unemployment benefits last week, further evidence of the devastation the coronavirus outbreak has unleashed on the U.S. economy
9:12AM ( 1 hour ago )
AP Business
The Latest: Britain to raise virus self-isolation period
Britain is raising the self-isolation period for people who test positive for the coronavirus or have symptoms to 10 days from seven days
6:21AM ( 4 hours ago )
Volkswagen lost $1.8 billion in Q2 but sees profit for year
Volkswagen lost money in the second quarter as the pandemic closed factories and dealerships
5:27AM ( 4 hours ago )
Global markets sink after Fed virus warning
Global stock markets have sunk after the U.S. Federal Reserve warned the coronavirus pandemic may threaten the fragile economic recovery
5:23AM ( 5 hours ago )
AP Business - Corporate News
German economy plunged 10% during 2nd quarter amid pandemic
Germany's economy took a massive hit during the pandemic shutdowns
6:51AM ( 3 hours ago )
Global stocks sink after Fed virus warning, eyes on GDP data
Global stock markets have sunk after the U.S. Federal Reserve warned the coronavirus pandemic may threaten the fragile economic recovery
6:37AM ( 3 hours ago )
Asian stocks gain after Fed keep US interest rates low
Asian stock markets have risen after the U.S. Federal Reserve left interest rates unchanged to support a struggling economy
1:24AM ( 8 hours ago )
AP Business - Economy
Wall Street rallies as Fed keeps rates pinned at record low
Wall Street rallied on Wednesday, and the S&P 500 climbed 1.2% for its best day in two weeks after the Federal Reserve kept the accelerator floored on its support for the economy
4:45PM ( 17 hours ago )
Wall Street rally carries on after Fed keep rates ultra-low
Stocks closed broadly higher on Wall Street after the Federal Reserve said it will keep the accelerator floored on its aid for the economy
4:07PM ( 18 hours ago )
Wall Street climbs ahead of Fed announcement, led by tech
Stocks are rising on Wall Street Wednesday ahead of a Federal Reserve announcement where investors expect the central bank to keep the accelerator floored on its aid for the economy
1:12PM ( 21 hours ago )
AP Business - Financial Markets
Finance firm founder gets 6 months in college bribery scam
The founder of a Silicon Valley venture capital firm has been sentenced to six months behind bars for paying about $450,000 in bribes to boost his two daughters’ entrance exam scores and get one of them into Georgetown University as a bogus tennis recruit
5:01PM ( 17 hours ago )
Trump seeks out loyal donors in West Texas fracking fields
President Donald Trump is visiting a U.S. fracking hub on the West Texas plains
3:30PM ( 18 hours ago )
Gaps in federal oversight add to virus woes at vets homes
Big gaps in federal oversight of long-term care facilities for aging veterans may have contributed to rampant coronavirus infections and more than 200 deaths at state-run homes
2:33PM ( 19 hours ago )
AP Business - Industries
Iran fires missile at mock aircraft carrier amid US tensions
Iran’s paramilitary Revolutionary Guard has fired a missile from a helicopter targeting a mock-up aircraft carrier in the strategic Strait of Hormuz
10:13AM ( 2 days ago )
South Korea to have solid fuel rockets in major deal with US
South Korea said Tuesday it has won U.S. consent to use solid fuel for space launch vehicles, a move that experts say would enable Seoul to launch its first surveillance satellites and accumulate technology to build more powerful missiles
7:16AM ( 2 days ago )
Japan's Mitsubishi Motors racks up red ink on pandemic pain
Mitsubishi Motors Corp. has reported a loss of 176 billion yen, or $1.7 billion, in the April-June quarter, and is forecasting more red ink, as the coronavirus pandemic slams auto demand around the world
5:07AM ( 3 days ago )
AP Business - Utilities
Trump floats November election delay - but he can't do that
President Donald Trump is for the first time floating a “delay" to November's presidential election
10:04AM ( 20 minutes ago )
Toronto sets lineup, Regina King to debut Muhammad Ali film
The Toronto International Film Festival on Thursday unveiled a lineup that bore little in common with its normal barrage of awards contenders and premier fall films, but features the directorial debut of Regina King and the latest documentaries from Frederick Wiseman and Werner Herzog
10:00AM ( 24 minutes ago )
Pandemic hits Comcast 2Q; Peacock service has 10M sign-ups
The coronavirus pandemic took a toll on Comcast in the second quarter as movie theaters closed, theme parks shut down and advertisers cut back
9:56AM ( 28 minutes ago )
John Lewis' funeral set for Atlanta church that MLK once led
At least two former presidents will attend John Lewis' funeral as he is mourned, revered and celebrated at Ebenezer Baptist Church in Atlanta
9:56AM ( 28 minutes ago )
Former president who brought direct elections to Taiwan dies
Former Taiwanese President Lee Teng-hui, who brought direct elections and other democratic changes despite missile launches and other fierce saber-rattling by China, has died at age 97
9:48AM ( 36 minutes ago )