Wall Street stocks dip as global rally fades
NEW YORK — Wall Street stumbled Thursday after a report showed layoffs continue to sweep the country at a stubbornly steady pace, one of several mixed reports to highlight the uncertain path ahead for the economy.
The S&P 500 slipped 0.3 percent, following up on declines across Europe and Asia, as a worldwide rally faded. Stocks in China fell particularly sharply after a report showed shoppers there are slow to spend even though its economy returned to growth. Treasury yields also lost ground in a sign of increased caution.
Heavy losses for travel-related stocks helped pull the S&P 500 to its first loss in three days, down 10.99 to 3,215.57. Cruise-ship operators, airlines and hotels gave up chunks of their big gains from a day earlier.
Drops for Microsoft and other tech titans also weighed heavily because they’re the largest stocks in the index. They also sent the Nasdaq composite, which set a record last week, to a larger loss than other indexes. It fell 76.66, or 0.7 percent, to 10,473.83. The Dow Jones Industrial Average lost 135.39 points, or 0.5 percent, to 26,734.71.
just a pause,” said Adam Taback, chief investment officer for Wells Fargo Private Bank. “I wouldn’t read too much into it. The Nasdaq continues to be under a little bit of pressure, but it’s due for a breather as well.”
It marks the latest ebb for markets, which have mostly been churning up and down for a little more than a month. Pushing stocks higher have been signs of strengthening in the economy as lockdowns have eased, along with massive aid from the Federal Reserve and Congress. Hopes for a potential COVID-19 vaccine also helped the S&P 500 erase most of an earlier 34 percent drop from its record, down to 5 percent.
But pulling markets lower has been the relentless rise of coronavirus counts across much of the U.S., which threatens to undo all the improvements. California has brought back orders for bars and other businesses to close due to a surge in cases, and the worry is other states will have to follow suit.
Reports on Thursday showed that layoffs across the country remain stubbornly high, with 1.3 million workers filing for unemployment benefits last week. That’s down slightly from the prior week, but only by 10,000. The improve“It’s ment was also weaker than economists expected.
The yield on the 10-year Treasury fell to 0.61 percent from 0.63 percent late Wednesday. It tends to move with investors’ expectations for the economy and inflation.
Tech stocks were among the hardest hit, a turnaround from their remarkably resilient run through much of the pandemic.
Microsoft fell 2 percent, and Apple lost 1.2 percent. It’s a rare step back for the giants, which are both still up roughly 30 percent for 2020 on expectations that they can keep growing almost regardless of the pandemic.