clearn.png
Thursday September 23rd, 2021 7:25AM

A late slide, led by Big Tech, leaves US stock indexes lower

By The Associated Press
Related Articles
  Contact Editor

Stocks gave up an early gain and wound up broadly lower on Wall Street, led by declines in tech heavyweights like Facebook and Apple. The S&P 500 gave up 0.5% Wednesday, its second loss in a row, while the tech-heavy Nasdaq dropped 2%. Bond yields mostly fell after rising earlier this week. GameStop had another bumpy ride, losing a third of its value after releasing a disappointing earnings report. The money-losing video game retailer is still up more than sixfold this year after becoming a favorite of online investors who talked the stock up on online message boards. Crude oil prices rose 6%.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

U.S. stock indexes are mostly lower in afternoon trading Wednesday as a sell-off in technology companies outweighs gains by banks and elsewhere in the market.

The S&P 500 index was down 0.2% as of 3:42 p.m. Eastern time after giving up an early gain. The benchmark index is on track for its second straight decline, adding to the market's losses over the past couple of weeks. The Dow Jones Industrial Average rose 100 points, or 0.3%, to 32,527. The Nasdaq fell 1.6%. Bond yields were mostly lower after rising earlier this week.

Technology and communication stocks weighed on the market, pulling the tech-heavy Nasdaq down more compared to the other indexes. Apple was down 1.6%, while Facebook fell 2.5%.

Bank stocks, which took a beating on Tuesday, were among the best performers. Banks have been volatile the last couple of weeks as investors try to gauge the impact of higher interest rates on the U.S. economy. Higher interest rates can slow economic momentum, but they also allow banks to charge more for loans. JPMorgan Chase added 1.1%.

Investors had their eye on Washington, where Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen spoke before the Senate about the government's efforts to combat the economic impact of the coronavirus pandemic.

GameStop sank 31.6% after reporting results that missed Wall Street’s forecasts, though the stock is still up nearly sevenfold since the beginning of the year after it became a social media darling for a swarm of online investors. The company took no questions from investors on its quarterly conference call late Tuesday.

The pandemic remains a dominant topic for investors. Stocks fell on Tuesday after Germany, Europe’s biggest economy, and the Netherlands extended lockdowns and imposed new travel and business curbs in response to spikes in infection. That followed similar moves earlier by Italy and France.

“There's a feeling that we’re not quite done with COVID-19 yet at all," said Brad McMillan, chief investment officer for Commonwealth Financial Network. “That, combined with other concerns, is creating a lot of uncertainty.”

The bond market was relatively quiet for a change. The yield on the 10-year Treasury note fell slightly to 1.61%. It had been as high as 1.74% last week, which caused the stock market to go into selling mode.

Bond yields have risen this year as traders have been watching the potential for inflation pressures to pick up after struggling economies were flooded with credit and government spending. That has depressed U.S. bond prices, prompting some to shift money out of stocks.

While rising interest rates are a key concern, investors are still juggling worries about the speed of vaccine distribution, COVID-19 cases and the potential for future tax changes crimping corporate profits, McMillan said.

“There’s no central narrative that’s moving the market in one direction,” he said. “Smaller waves have the potential to rock the market back and forth.”

  • 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.
Democrats launch Senate battle for expanded voting rights
Democrats have renewed their efforts to muscle through the largest overhaul of U.S. elections in a generation
4:29PM ( 6 minutes ago )
Virginia, with 2nd-most executions, outlaws death penalty
Virginia has become the 23rd state to abolish the death penalty
4:17PM ( 18 minutes ago )
Relative of Colorado victim: A void that 'won't be filled'
A relative of a grocery worker who died in the shooting that killed 10 people at a Colorado supermarket says he and his family are trying to take in that she’s gone forever
4:13PM ( 22 minutes ago )
Associated Press (AP)
Women's soccer stars join Biden to promote closing pay gap
President Joe Biden is making the case that the pay disparity between men and women has hurt the economy
3:48PM ( 48 minutes ago )
US, Europe, NATO close ranks to counter 'aggressive' China
The United States and Europe are stepping up cooperation to respond to what the U.S. calls “aggressive and coercive” behavior by China
3:32PM ( 1 hour ago )
The Latest: CDC: 70% of people over 65 got 1 dose of vaccine
More than three months into the U.S. vaccination drive, 70% of Americans 65 and older have received at least one dose of the vaccine
3:31PM ( 1 hour ago )
AP Business
Yellen sees room for US to borrow, opens door to tax hike
Treasury Secretary Janet Yellen believes the U.S. government has more room to borrow, but says higher taxes would likely be required in the long run to finance future spending increases
1:57PM ( 2 hours ago )
Massive cargo ship becomes wedged, blocks Egypt's Suez Canal
Officials say a skyscraper-sized container ship has become wedged across Egypt’s Suez Canal and blocked all traffic in the vital waterway
12:35PM ( 4 hours ago )
Erdogan urges investors to trust Turkey's economy, potential
Turkish President Recep Tayyip Erdogan has urged investors to have confidence in Turkey’s economy days after he fired his third central bank governor in less than two years
11:17AM ( 5 hours ago )
AP Business - Economy
Global stocks decline on virus worries, Wall St decline
Global stocks have followed Wall Street lower after European governments extended anti-coronavirus lockdowns, clouding the outlook for economic recovery
4:56AM ( 11 hours ago )
Asia stocks follow Wall Street down on renewed virus worries
Asian stock markets have followed Wall Street lower after European governments extended anti-coronavirus lockdowns, clouding the outlook for economic recovery
2:55AM ( 13 hours ago )
Stocks close broadly lower on Wall Street as banks stumble
Stocks closed broadly lower on Tuesday and gave back nearly all of their gains from a day earlier as technology, industrial and bank stocks fell
5:17PM ( 23 hours ago )
AP Business - Financial Markets
COVID-19 law sparks dialogue on nursing home alternatives
The memory of the coronavirus pandemic’s awful toll in nursing homes is still raw
1:09PM ( 3 hours ago )
Ex-US vaccine chief fired over sexual harassment allegations
The former U.S. science adviser for COVID-19 vaccines has been fired as board chair of a medical research company over sexual harassment allegations
12:50PM ( 3 hours ago )
The Latest: Dr. Fauci: Not turning corner yet on coronavirus
Dr. Anthony Fauci isn’t ready to say the nation has turned the corner on the coronavirus pandemic, despite about 2.5 million Americans getting vaccinated each day
11:59AM ( 4 hours ago )
AP Business - Industries
Judge mulls requiring PG&E to turn off power more frequently
A federal judge overseeing Pacific Gas & Electric’s criminal probation is considering requiring the utility to be more aggressive about turning off its electricity lines
4:06PM ( 1 day ago )
White House drops Interior nominee after Murkowski objects
The White House is withdrawing its planned nomination of Elizabeth Klein to become deputy secretary at the Interior Department amid opposition from Alaska Republican Sen. Lisa Murkowski
2:41PM ( 1 day ago )
Report: California wildfire sparked when tree hit power line
Officials say a Northern California wildfire that killed four people and destroyed more than 200 buildings last year was sparked when tree branches came into contact with Pacific Gas & Electric power lines
1:11AM ( 1 day ago )
AP Business - Utilities
Virginia, with 2nd-most executions, outlaws death penalty
Virginia has become the 23rd state to abolish the death penalty
4:17PM ( 18 minutes ago )
Relative of Colorado victim: A void that 'won't be filled'
A relative of a grocery worker who died in the shooting that killed 10 people at a Colorado supermarket says he and his family are trying to take in that she’s gone forever
4:13PM ( 22 minutes ago )
Congress questions Texas officials about power grid failure
Congress is looking into the cause of last month's power blackouts across Texas
4:09PM ( 26 minutes ago )
Haunted by mass violence, Colorado confronts painful history
Colorado's latest mass shooting is part of a long and bloody history for the state, which has become infamous for massacres
4:07PM ( 29 minutes ago )
The Latest: Louisiana to open vaccines to age 16 and up
Louisiana will end its limits Monday on which adults can receive the coronavirus vaccine, giving access to anyone 16 and older who wants to schedule an appointment
4:05PM ( 30 minutes ago )