Business

Nasdaq ends lower as investors sell Big Tech

5 minute read

The front facade of the New York Stock Exchange (NYSE) is seen in New York, U.S., February 12, 2021. REUTERS/Brendan McDermid/File Photo

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  • U.S. weekly jobless claims fall to 16-month low
  • Tech sector ends four-day winning streak

July 15 (Reuters) - The Nasdaq ended lower on Thursday, pulled down by Apple, Amazon and other Big Tech companies as a fall in weekly jobless claims data fed investor concerns about a recent inflation spike.

Amazon (AMZN.O), Apple (AAPL.O) Tesla (TSLA.O) and Facebook (FB.O)all fell. Nvidia (NVDA.O) tumbled around 4%.

The S&P 500 technology sector index (.SPLRCT)ended a four-day winning streak. Earlier this week, investors' favor for heavyweight growth stocks pushed the S&P 500 (.SPX) and the Nasdaq (.IXIC) to record highs.

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The S&P 500 energy sector index (.SPNY) fell more than 1% and tracked a drop in crude prices on expectations of more supply after a compromise agreement between leading OPEC producers. read more

Fresh data showed the number of Americans filing new claims for unemployment benefits fell last week to a 16-month low, while worker shortages and bottlenecks in the supply chain have frustrated efforts by businesses to ramp up production to meet strong demand for goods and services. read more

Federal Reserve Chair Jerome Powell told lawmakers he anticipated the shortages and high inflation would abate. Yet many investors still worry that more sustained inflation could lead to a sooner-than-expected tightening of monetary policy.

"People are very nervous and concerned about inflation, tax rates and the (2022 midterm) election. Those three things are very much on people's minds," said 6 Meridian Chief Investment Officer Andrew Mies, describing recent phone calls with his firm's clients.

Unofficially, the Dow Jones Industrial Average (.DJI) rose 54.52 points, or 0.16%, to 34,987.75, the S&P 500 (.SPX) lost 14.29 points, or 0.33%, to 4,360.01 and the Nasdaq Composite (.IXIC) dropped 101.82 points, or 0.7%, to 14,543.13.

Morgan Stanley (MS.N)dipped as much as 1.2% after it beat expectations for quarterly profit, getting a boost from record investment banking activity even as the trading bonanza that supported results in recent quarters slowed down. read more

Second-quarter reporting season kicked off this week, with the four largest U.S. lenders - Wells Fargo & Co (WFC.N), Bank of America Corp (BAC.N), Citigroup Inc (C.N) and JPMorgan Chase & Co (JPM.N) - posting a combined $33 billion in profits, but also highlighting the industry's sensitivity to low interest rates. read more

Blackstone (BX.N) said late on Wednesday it would pay $2.2 billion for 9.9% stake in American International Group's (AIG.N) life and retirement business. AIG and Blackstone both rallied. read more

Johnson & Johnson (JNJ.N)dipped after it voluntarily recalled five aerosol sunscreen products in the United States after detecting a cancer-causing chemical in some samples. read more

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Reporting by Noel Randewich; Additional reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Maju Samuel

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