sunny.png
Sunday May 16th, 2021 2:08PM

Technology stocks stumble, leading rest of the market lower

By The Associated Press

NEW YORK (AP) — Technology stocks took a tumble on Wall Street Thursday, giving back some of their spectacular gains over the past several months and dragging the rest of the market down with them.

The S&P 500 was down 3.4% as of 11:20 a.m. Eastern time, and the tech-heavy Nasdaq fell 4.8%. Both indexes had set their latest record highs a day earlier, and the Nasdaq is still up nearly 28% for the year. The S&P 500 had been up nine of the last 10 trading days and posted its fifth straight monthly gain in August.

Big Tech companies have posted outsize gains in recent months as investors bet that they would continue posting huge profits even with many coronavirus restrictions still in place as people spend even more time online with their devices. Market watchers have questioning recently whether those gains were overdone.

The Dow Jones Industrial Average fell 721 points, or 2.6%, to 28,317.

Big tech stocks, which account for a significant chunk of the U.S. stock market's value these days, fell broadly. Apple dropped 6%, Amazon lost 4.3% and Facebook gave back 5.1%.

Investors were also taking into account the latest economic figures.

The government reported that the number of Americans who applied for unemployment benefits fell last week to 881,000, a still very high number but slightly better than what economists had expected. A gauge of the services sector also came in slightly worse than economists were looking for.

The stock market has rallied this spring and summer after plunging in March as investors realized the economic toll the coronavirus pandemic was going to cause. Most of the rally has been on strong performances from tech stocks, but also a hope that the worst of the pandemic is in the past, despite rising infections in schools and the possibility of a second surge of infections in the fall. Huge amounts of support from the Federal Reserve and Congress have also helped bolster the economy.

Novavax, which is developing a coronavirus vaccine, was up nearly 2% as investors placed bets that a vaccine could come as early as November.

Investors will be paying close attention Friday when the Labor Department releases its August job report. Economists surveyed by FactSet forecast that the U.S. economy created 1.4 million jobs in August, but that would be down from 1.74 million jobs in July. Tens of millions of Americans remain unemployed however, as seen by this week's unemployment benefits numbers.

A report by payroll processor ADP, widely watched as a forerunner of government employment data due out Friday, showed the private sector added 428,000 jobs in August, less than half the 1 million expected by forecasters.

If tomorrow's jobs numbers do not deliver, it's unlikely the stock market will rally much higher from here, analysts said.

Analysts said that could be a warning sign the job market is cooling after some U.S. states reimposed anti-virus controls and the expiration of supplemental unemployment benefits cut into consumer spending.

“Bullish stock market sentiment seems to be nearing a tentative peak as the labor market recovery stalls,” analyst Edward Moya of Oanda wrote in a report.

U.S. crude oil for October delivery fell 2.4% to $40.52 a barrel. Brent crude, the international benchmark, fell 2.2% to $43.44 per barrel.

  • Associated Categories: Associated Press (AP), AP Business, 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.
Greece suffers huge output loss but sticks to 2020 forecast
Greece has suffered a huge drop in output in the second quarter of the year, plummeting 15.2% on an annual basis, but the government insisted the figures did not worsen the country’s annual outlook
11:49AM ( 5 minutes ago )
Black man killed by Rochester police is remembered as loving
The aunt of a Black man who suffocated after police in New York’s third-largest city put a “spit hood” over his head says he was the loving father of five adult children and had just arrived in Rochester for a visit with his brother
11:35AM ( 19 minutes ago )
The Latest: Biden trip can help Kenosha heal, official says
Wisconsin Attorney General Josh Kaul says he thinks former Vice President Joe Biden can help heal Kenosha, Wisconsin in ways that President Donald Trump’s stop in the city did not
11:29AM ( 25 minutes ago )
Associated Press (AP)
Turkey: Russia to hold live-fire exercises in Mediterranean
Turkey has announced that Russia will hold live-fire naval exercises in the eastern Mediterranean
11:05AM ( 48 minutes ago )
EU share of electric cars grew during virus lockdown months
Carmakers in Europe pressed ahead with their push for a bigger share for electric cars during and after the pandemic lockdowns
10:46AM ( 1 hour ago )
The Latest: Arkansas reports largest single-day deaths
Arkansas reported its largest single-day increase in deaths from the coronavirus, while the number of cases at the University of Arkansas’ Fayetteville campus increased to nearly 400
10:44AM ( 1 hour ago )
AP Business
Jobless claims fall to 881,000 but layoffs remain elevated
The number of laid-off Americans applying for unemployment benefits fell to a still-elevated 881,000 last week, evidence that the viral pandemic keeps forcing many businesses to slash jobs
9:29AM ( 2 hours ago )
Slammed by virus, France unveils huge economic rescue plan
Facing resurgent virus infections, France will spend $118 billion to try to pull the country out of its worst economic slump since World War II
8:54AM ( 2 hours ago )
Many more likely sought jobless aid as layoffs remain high
The U.S. government will provide its latest picture Thursday of the layoffs that have remained elevated at a weekly pace of around 1 million since the pandemic erupted nearly six months ago even as some sectors of the economy have been rebounding
6:59AM ( 4 hours ago )
AP Business - Economy
US stocks open higher as a technology-driven rally chugs on
Stocks are opening higher as Wall Street's tech-driven rally continues to notch gains
9:43AM ( 1 day ago )
Global shares mostly higher, cheered by US economic data
Global shares are mostly higher as investors were encouraged by positive U.S. economic data, even while the coronavirus pandemic has regions around the world battling recessions
5:27AM ( 1 day ago )
Tunisian prime minister wins confidence vote amid crisis
Tunisian lawmakers approved Hichem Mechichi as new prime minister after pressing him for 11 hours over how he will bring the country out of economic and social crisis
3:25AM ( 1 day ago )
AP Business - Financial Markets
The Latest: Tyson Foods to open medical clinics at US plants
Tyson Foods says it is planning to open medical clinics at several of its U.S. plants to improve the health of its workers and better protect them from the coronavirus
8:25AM ( 3 hours ago )
UN chief urges Japan, others to meet goals on climate change
The U.N. chief is urging Japan and other wealthy nations to give up reliance on coal and other fossil fuels and commit to investments in green energy as they recover from the coronavirus pandemic
7:50AM ( 4 hours ago )
Pressure grows for Germany to rethink pipeline with Russia
German Chancellor Angela Merkel faces pressure to use a joint German-Russian pipeline project as leverage in getting Russia to provide answers about the poisoning of the Kremlin’s most determined critic
7:28AM ( 4 hours ago )
AP Business - Industries
Damaged Venezuelan oil tanker drawing international concern
A huge oil tanker listing off a remote stretch of Venezuela's coast is triggering international calls for action
5:10PM ( 18 hours ago )
Mercedes-Benz unveils new flagship S-Class sedan
Daimler AG is showing off the new S-Class from its Mercedes-Benz luxury brand
12:04PM ( 23 hours ago )
Drilling, mines, other projects hastened by Trump order
Documents provided to The Associated Press show the Trump administration is seeking to fast track environmental reviews of dozens of major energy and infrastructure projects during the COVID-19 pandemic
11:34AM ( 1 day ago )
AP Business - Utilities
Greece suffers huge output loss but sticks to 2020 forecast
Greece has suffered a huge drop in output in the second quarter of the year, plummeting 15.2% on an annual basis, but the government insisted the figures did not worsen the country’s annual outlook
11:49AM ( 5 minutes ago )
Black man killed by Rochester police is remembered as loving
The aunt of a Black man who suffocated after police in New York’s third-largest city put a “spit hood” over his head says he was the loving father of five adult children and had just arrived in Rochester for a visit with his brother
11:35AM ( 19 minutes ago )
The Latest: Biden trip can help Kenosha heal, official says
Wisconsin Attorney General Josh Kaul says he thinks former Vice President Joe Biden can help heal Kenosha, Wisconsin in ways that President Donald Trump’s stop in the city did not
11:29AM ( 25 minutes ago )
AP Explains: Novichok that sickened Navalny a Cold War relic
Novichok, a deadly nerve agent that has left Russian opposition politician Alexei Navalny in a coma and nearly killed a former Russian spy and his daughter in 2018, was the product of a highly secretive Soviet chemical weapons program
11:22AM ( 32 minutes ago )
UK public tribunal to probe Uighur genocide allegations
A prominent British human rights lawyer is convening an independent tribunal in London to investigate whether the Chinese government’s alleged rights abuses against Uighur Muslims in the far western Xinjiang region constitute genocide or crimes against humanity
11:16AM ( 37 minutes ago )