Wall Street retreats from record highs as tech stocks slide, jobless claims rise

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Wall Street retreats from record highs as tech stocks slide, jobless claims rise

On Thursday, all three key indices of Wall Street had beaten a hasty retreat with benchmark S&P 500 and tech-heavy Nasdaq widened gaps further from their all-their closing peaks, as investors continued to ditch out mega-cap tech stocks, while an unprecedented rise in weekly initial jobless claims that seemingly had bolted out of the blue, added to a wintry chill in a struggling US labour market that has long been looking for directions amid rising uncertainties over President Biden’s $1.9 trillion stimulus package.

In factuality, in the day’s sharp downturn in a slew of US stocks was largely catalysed by a caustic sell-off wave of mega-cap tech stocks with shares’ prices of Apple Inc., Alphabet Inc. alongside Microsoft Corp.

tumbling between 0.5 per cent and 1.2 per cent, eventually leading to a hefty header on both benchmark S&P 500 and tech-heavy Nasdaq. Apart from that, shares’ prices of Facebook Inc. tottered as much as 1.6 per cent after it had alienated Australian users and blocked all news content in the region, as market participants remained fretted over possibilities of a protracted legal battle between the worlds’ largest social networking service provider and the Aussie Government of PM Scott Morrison.

Wall Street falls as tech stocks slide

Besides, US Labour Department said in a statement earlier in the day that the number of Americans filing for first-time state unemployment benefits rose 13,000 to 861,000 in the week that ended on February 13, eventually illustrating a feeble recovery in US labour market amid rising scepticism on President Biden’s $1.9 trillion fiscal stimulus bill which in effect would stem a budget deficit of an unprecedented scale during current fiscal year while fleshing up inflation indicators.

Citing statistics, in the day’s Wall Street close out, trade-sensitive Dow slipped 0.36 per cent to 31,500.26 from its all-time closing high registered yesterday and S&P 500 shrugged off 0.47 per cent to 3,912.78, while tech-heavy Nasdaq dipped 0.79 per cent to round off the day at 13,855.25.

Meanwhile, citing that a latest leg of bearish momentum in the Wall Street would unlikely to persist despite a highly over-priced market atmosphere, a chief investment officer for private wealth at Glenmede in Philadelphia, Jason Pride said, “We are still in the cautiously bullish environment for the market on the whole.