By Yasin Ebrahim
Investing.com – The Dow cut some of its losses on Thursday, but still closed lower as the sell-off in big tech continued amid a rocky week for stocks.
The fell 0.47%, or 130 points. The was down 0.82% while the slipped 1.27%.
Big tech continued its selloff from a day earlier, with Facebook (NASDAQ:) leading the decline, falling more than 3%. Apple (NASDAQ:) Microsoft (NASDAQ:), Amazon.com (NASDAQ:) and Alphabet (NASDAQ:) also fell.
Cloud company Snowflake (NYSE:), which more the doubled on its public market debut a day earlier, fell 10%.
Investor sentiment was also soured by economic data pointing to signs of a slowdown in the recovery at a time when hopes fade for further government stimulus.
Initial jobless claims came in at 860,000 on a seasonally adjusted basis in the week ended Sept. 12, the Department of Labor said Thursday. That was below the 893,000 reading from the prior week, but missing economists’ forecast for a reading of 850,000.
“The downward trend in regular state initial jobless claims – that is, the headline number – has slowed to a crawl in the past couple of weeks,” Pantheon Macroeconomics said in a note.
The Commerce Department, meanwhile, reported an unexpected 76,000 decline in housing starts as activity was hurt by Hurricane Laura and Tropical Storm Marco. While the Philly Fed headline sentiment index, a key gauge of manufacturing activity, fell to a reading of 15, in-line with estimates.
Financials continued to struggle, with Citigroup (NYSE:), Goldman Sachs (NYSE:) and JPMorgan Chase & Co (NYSE:) down more than 1% amid worries that the Fed’s pledge to keep rates at near-zero until 2023 will continue to hamper net interest margin.
Materials sidestepped the broader market weakness as Mosaic (NYSE:) surged more than 6% rebounding from weakness over the last few days after the company reported weaker revenue in August.
Industrials and energy also ended higher, with the latter getting a boost from rising oil prices after OPEC and its allies urged countries to step up compliance with the production accord.
In other news, Dave & Buster’s Entertainment (NASDAQ:) slumped 26% after the company warned it could be forced into bankruptcy if an agreement can’t be reached with its creditors, The Wall Street Journal reported.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.