Wall Street Close: Tech rout takes S&P and Dow into a tailspin
- Dow Jones Industrial Average lost 811.33 points, or 2.79%,
- S&P 500 dropped 125.96 points, or 3.52%, to 3,454.88.
- Nasdaq Composite fell 598.34 points, or 4.96%, to 11,458.10.
A rout in US equities, led by overheated tech stocks, dominated Wall Street as the big-tech market darlings suffered sharp declines.
consequently, the tech-laden Nasdaq and the S&P 500 SPX had their worst days since June 11, and the Dow DJI, since June 26.
Unofficially, the Dow Jones Industrial Average lost 811.33 points, or 2.79%, to 28,289.17, the S&P 500 dropped 125.96 points, or 3.52%, to 3,454.88 and the Nasdaq Composite fell 598.34 points, or 4.96%, to 11,458.10.
Thursday's breakdown has signalled a significant trend reversal in a severely extended and overbought market.
S&P 500 movers: NVIDIA Corp (NVDA: NASDAQ) falls sharply from record highs
Technology shares, which registered impressive gains during the latest risk rally, are among the worst performers on Thursday.
At one stage, NVIDIA Corp (NVDA: NASDAQ) shares slump by nearly 9% at $523.37.
Qorvo Inc (QRVO: NASDAQ), Juniper Networks Inc (JNPR: NYSE), Skyworks Solutions Inc (SWKS: NASDAQ), Zebra Technologies Corp (ZBRA: NASDAQ) and Advanced Micro Devices Inc (AMD: NASDAQ) shares are down between 8.9% and 7.9%.
US data mixed ahead of NFP
Initial claims were fewer than expected and the August ISM non-manufacturing index fell back in July.
Initial claims were fewer than expected led by a sharp drop in new orders (56.8 vs 67.7), while business activity fell to 62.4 vs 67.2.
Employment improved but remains below 50, indicating jobs in the non-manufacturing sector are still being lost, albeit at a slower pace. The prices index firmed to 64.1.
Meanwhile, Initial Claims were fewer than expected and continuing claims fell last week (albeit with methodology changes), providing evidence of an ongoing improvement in the US labour market.
Markets are now getting set ahead of the August Non-Farm Payroll data which is due today, Friday. The Reuters poll is calling for1.4 million jobs to have been created and a 9.8% unemployment rate.
S&P 500 levels
S&P 500 Price Analysis: The S&P 500 crashes 2.5% and drops below 3,500