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The NASDAQ Composite plummeted on Thursday, erasing the sharp gains from the previous session, as investors continued to rotate away from technology stocks and into more defensive areas of the market.
The Dow Jones Industrial index faded 477.74 points to kick off Thursday at 52,878.38, as gains in stocks such as Chevron and Johnson & Johnson were not enough to spare the 30-stock index from the tech selling spree. The Dow erased almost half of its advance from Wednesday’s massive rally.
The S&P 500 index dropped 138.48 points, or 1.8%, to 7,550.14.
The tech-heavy NASDAQ slumped 843.37 points, or 3.2%, to 24,893.14.
Chipmakers Broadcom and Nvidia each fell 5% Thursday, while others such as software stock Oracle declined close to 5%. Additionally, Elon Musk’s Tesla and SpaceX dropped 9% and 7%, respectively.
Another chip stock Qualcomm reported earnings that beat estimates, but the stock dropped 9% on a weaker-than-expected earnings outlook.
Shares of neocloud companies retreated, with CoreWeave losing 9%, Nebius losing 13% and Iren shedding 11%, amid those worries about a backlash to the industry in light of the election results in various states.
Prices for the 10-year Treasury gained slight ground, lowering yields to 4.87% from Wednesday’s 4.88%. Treasury prices and yields move in opposite directions.
Oil prices recovered $$1.62 to $89.74 U.S. a barrel.
Gold prices hiked $45.80 to $4,118.80 U.S. an ounce.
