Wall Street is under pressure on Thursday as tech shares resumed losses after a 2-day rebounding. The selloff accelerated in the final trading hour. Investors continue to rotate out of the growth stocks to the value stocks amid fears of an accelerating tightening monetary cycle. The Dow Jones Industrial Average was down 0.55%, the S&P 500 slid 1.42%, and Nasdaq slumped 2.51%.
The tech sector fell 1.8% as a result of the resumed selloff in the growth stocks. The Mega-cap tech companies all closed in red. Microsoft slumped more than 4%, Amazon was down 2.33%, while Alphabet, Apple, and Meta all fell nearly 1%. Tesla plunged 7%, and Nvidia slipped 5%. Snap plunged more than 10%, to a one-year low.
By contrast, The defensive sectors including consumer staples and utility gained in the S&P 500. Airline and banks' shares outperformed amid strong earnings expectations amid a hawkish Fed tone. Delta Airlines Inc. gained 2.5% following a better-than-expected fourth-quarter earnings report and positive full-year guidance. Boeing shares jumped 3% on the news that the aircraft maker could resume service in China. Big banks closed mixed. Citigroup rose 0.81%, Goldman Sachs was up 0.13%. JP Morgan Chase and Wells Fargo, however, slipped slightly.
The 10-year Treasury yield fell to 1.70%.
The WTI futures were down 1.37%, to $81.51 per barrel.
The gold futures slid $6.5, to $1,820.8 per ounce.
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