(MarketWatch) — U.S. stocks closed down on Thursday, as a rebound in technology shares stalled out, snapping a three-day winning streak for the Nasdaq Composite.
- The Dow closed down -176.70 or -0.49%
- The S&P 500 ended down -67.32 or -1.42%
- The Nasdaq dropped -381.58 or -2.51%
Shares of technology companies, expected to see revenue and earnings grow faster than average, fell on Thursday, reviving a trend from the start of 2022 when Treasury yields rose rapidly in response to expectations the Federal Reserve will be much more aggressive than previously anticipated in fighting surging inflation.
Growth shares, which are more sensitive to interest rates, bounced back, but the tech-heavy Nasdaq ended lower, halting recovery in the past three sessions.
U.S. stock indexes got a modest lift early Thursday after the December producer-price index showed inflation at the wholesale level rose 9.7% year over year, down from 9.8% in November. The monthly rise of 0.2% was the lowest in 13 months. Also, first-time jobless claims rose by 23,000 to 230,000 last week.
Federal Reserve Gov. Lael Brainard testified Thursday that “inflations is too high” as part of her nomination hearing to become the vice-chair of the institution.
- Shares of Delta Air Lines Inc. closed up 2.1% after the air carrier reported fourth-quarter adjusted profit and revenue that beat expectations.
- KB Home shares jumped 16.5%, after the home builder reported fourth-quarter profit above expectations and sales that matched forecasts, saying it had to meet “healthy demand” for housing amid “extremely challenging” operating conditions.
- Boeing Co. led Dow gainers, with shares up almost 3% after news reports said the company’s 737 Max aircraft could be cleared to resume flights in China as early as this month.
- After chief executive Adam Aron disclosed and tweeted about his sale of 312,500 more shares, AMC Entertainment stock plummeted 9%, an eight-month low for the meme stock.
- Oil futures declined by 52 cents, or 0.6%, to settle at $82.12 a barrel after ending Wednesday at a two-month high.
- Gold futures fell $5.90, or 0.3%, to settle at $1,821.40 an ounce.
- Bitcoin fell 2.4%.
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