The broader index was pulled down by investors selling off large technology stocks that had previously surged.
The Nasdaq Composite Index fell 350.38 points or 2.55% to 13,401.86, closing at its lowest point, with Microsoft and Apple both down more than 2% and Tesla down 6.44%. The Dow Jones Industrial Average climbed more than 300 points during the day to touch a new all-time high before falling sharply and falling into negative territory in the final minutes before the close, closing down 34.54 points or 0.1% to 34,742.82 points. The Stamp 500 index fell 44.17 points or 1.04% to 4188.45 points.
Investors got out of growth stocks, as they did earlier in the year when they faced rising inflation concerns and rising interest rates. Facebook fell 4.11%, while Amazon and Netflix both fell more than 3%. Alphabet fell 2.56 percent after Citi downgraded its rating. Cathie Wood’s Ark Innovation ETF fell 5 percent, touching its lowest level since November.
“The price action in technology stocks has frustrated many, who had expected the 7-day move to spark a continued rally in the category,” Vital Knowledge founder Adam Crisafulli said in the report. “Instead, there was an aggressive sell-off and a widening of losses in the category after stock prices broke through key levels.”
Technology stocks rose after a weaker-than-expected April jobs report released on the 7th eased market concerns about a change in policy by the Federal Reserve Board (Fed). During the epidemic, technology stocks soared due to the low interest rate regime.
Utilities and consumer necessities were the two 10-day gainers in the largest class of stocks.
Investors competed to buy stocks that will benefit the most from the economic recovery, including energy, financials and industrials.
Energy stocks rose, including Marathon Oil (Marathon Oil), Western Petroleum (Occidental Petroleum) and Devon Energy (Devon Energy). Chevron (Chevron) fell 0.41%, Exxon Mobil (Exxon) also rose.
The Dow rose 2.7% last week, the history of the index rose 1.2%. Even though the last trading day last week rose 0.9%, but that refers to the full week fell 1.5%.
The Dow and the Dow Jones Transportation Average both hit new highs last week, confirming the “Dow Theory” of long breakout moves.
Transportation stock indices are widely seen as pointers to global economic activity. The rally in these stocks represents an accelerated recovery from the epidemic.
However, the April jobs report showed that U.S. employers added 266,000 jobs last month. Economists surveyed by Dow Jones expected an increase of 1 million.
Gasoline futures traded volatile after a ransomware attack forced the closure of the largest U.S. fuel pipeline over the weekend. Colonial Pipeline, which operates a 5,500-mile-long pipeline system, said some parts of its system are back online and service can be expected to resume by the end of the week.
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