Technology companies helped drag stocks lower on Wall Street Thursday, knocking the S&P 500 into the red for the week. The benchmark S&P 500 index dropped 0.4% and is now on track for a 0.3% weekly loss. Technology companies, whose pricey valuations make them more sensitive to inflation fears, were the biggest weight on the market. Microsoft fell 0.6% and Apple lost 1.2%. Retailers, hotel operators and a variety of other companies that rely on direct consumer spending also posted some of the biggest declines, as did communications companies. Etsy slid 5.4%, Tesla dropped 5.3%, Wynn Resorts fell 4.1% and Facebook lost 0.9%. Banks and health care companies rose. AMC stock is riding the Reddit wave:What is a meme stock and is it right for your market portfolio? The selling came as investors weighed the latest economic reports showing that unemployment claims are falling but labor costs are rising. Traders were also looking ahead to the government’s latest monthly jobs report Friday, which could provide more clarity on the economic recovery and the potential for higher inflation. “There’s less conviction about what the jobs report may be, so you’re seeing the markets move a little sideways here,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “We’ve gotten all these fantastic growth numbers, and now we’ve got to look past that and look toward the future at the actual growth beyond the pandemic, and people are just trying to get a handle on what that may look like.” The S&P 500 fell 15.27 points to 4,192.85. The Dow Jones Industrial Average dropped 23.34 points, or 0.1%, to 34,577.04. The tech-heavy Nasdaq lost 141.82 points, or 1%, to 13,614.51. The Russell 2000 index of smaller companies gave up 18.59 points, or 0.8%, to 2,279.25. Bond yields rose. The yield on the 10-year Treasury rose to 1.63% from 1.59% late Wednesday.
“When the rubber meets the road with the realities of reopening, we think we could be in for a rocky period,” Hodge said.
AMC Entertainment slumped 17.9%, shedding gains from a brief rally, after the movie theater operator’s announcement that it would sell more shares following a huge run-up in its stock price on a surge of interest from individual investors. The stock is still up about 2,300% this year.
General Motors jumped 6.4% after saying it expects earnings in the first half of the year to exceed its earlier forecasts as its efforts to manage a global computer chip shortage have worked better than expected. Rival Ford Motor climbed 7.2% for the biggest gain in the S&P 500.
European and Asian markets closed mixed.