Stock market today: Dow falls 533 points as tech rout spreads to the broader market
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- Major stock indexes were down sharply for a second day on Thursday.
- A mega-cap retreat expanded into a broader rout, and the S&P 500 fell over 1%.
- Meanwhile, higher-than-expected jobless claims boosted confidence in a rate cut this year.
US indexes declined sharply for a second session this week, as the plunge in leading tech stocks broadened out to the rest of the market.
Artificial intelligence names in mega-cap tech such as Google and Amazon dropped over 1% through Thursday, pulling the tech-heavy Nasdaq down as low as 1.13%.
Index losses were even steeper on Wednesday, kicked off by a semiconductor rout. Chipmakers such as Nvidia plummeted in response to possible restrictions on sales to China, and industry names kept sliding through Thursday.
By the day's end, nearly every major S&P 500 group dropped, Bloomberg said, pulling the index below 1% before it pared losses to close 0.7% lower.
The first leg of the tech pullback could be justified as a rotation into small- and mid-cap stocks, commentators said, as the sector rallies on the prospect of lower interest rates this year.
But even small-cap names slumped on Thursday, and the Russell 2000 dropped 2.19%.
Meanwhile, initial jobless claims rose to 243,000 through the week ending July 13, above estimates for 229,000. The cooling market only raises bets that the Federal Reserve can cut rates this year.
Here's where US indexes stood at the 4:00 p.m. closing bell on Thursday:
- S&P 500: 5,544.59, down 0.78%
- Dow Jones Industrial Average: 40,665.02, down 1.29% (-533.0 6 points)
- Nasdaq composite: 17,871.22, down 0.7%
Here's what else is going on today:
- AI critics are about to be silenced by Nvidia's upcoming earnings call reveal, Goldman Sachs says.
- Jamie Dimon thinks the Fed should wait on cutting interest rates as inflation pressures stick around.
- An indicator with a 100% success rate is flashing more stock upside ahead.
- Overstretched valuations are a 'timebomb' that will end the market rally, SocGen says.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil shed 0.64% to $82.32 a barrel. Brent crude, the international benchmark, fell 0.41% to $82.02 a barrel.
- Gold shed 0.38% to $2,463.51 per ounce.
- The 10-year Treasury yield gained five basis points at 4.197%.
- Bitcoin slipped 0.65% to $63,677.