Wall St. closes sharply lower; S&P post biggest drop in 4 weeks as tech stumbles



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Wall St. closes sharply lower; S&P post biggest drop in 4 weeks as tech stumbles

Amid growing signs of a protracted US recession including a rise in initial jobless claims for the first time since late-March suggesting a persistent weakness in the US labour market, Wall St. had stumbled sharply on Thursday, as investors appeared to have turned their tails on high-flying tech stocks due to a mixed sags of earrings’ reports in the face of a likely second round of forced business closures in the United States which in effect could exacerbate a deep economic recession, suggested analysts.

In point of fact, amid an abrupt deterioration in Sino-US relation following Trump Administration’s order to shut down the Chinese consulate in Houston over allegations of espionage alongside a resurgent pandemic outbreak across the country, the US stocks had opened the day broadly lower, while the sell-off wave had steepened further following reveal of the US initial jobless claims data that reported over 1.4 million people had filed for unemployment benefit last week, up from a 1.3 million a week earlier.

Apple Inc. probe drags down Wall St.

Adding further strains into the US stocks, Thursday’s sell-off had sharpened further following reveal of a media headline that a number of US states had been probing the Cupertino-based iPhone maker Apple Inc.

over potential allegations of deceiving its consumers. Apple Inc., the largest taxpayer in the United States, had ended the session down by 4.6 per cent, weighing on the tech stocks of S&P 500 and Nasdaq. Citing statistics, on Thursday’s Wall Street closure, Dow faltered 1.31 per cent to 26,652.33 and S&P 500 shrugged off 1.23 per cent to 3,235.66, while leading the losses, the tech-heavy Nasdaq tottered 2.29 per cent to 10,461.42.

Meanwhile, addressing to a growing investors’ bet over small-cap shares amid rising geo-political uncertainties alongside a pandemic outbreak at large, an analyst at Wedbush Securities in San Francisco, Stephen Massocca said, “There has been a real disparity between growth and value and the narrowing has begun.

There was also a significant delta between large cap and small cap and we’re seeing that narrow as well.