Wall Street pulls back on recovery doubts



by Caroline Valetkevitch

NEW YORK (Reuters) – The New York Stock Exchange ended sharply down Thursday, again weighed down by the decline in technology stocks to which were added questions about the strength of the economic recovery in the United States.

The Dow Jones index fell 0.47% to 130.4 points from 27,901.98.

The larger S & P-500 lost 28.48 points, or -0.84%, to 3,357.01.

The Nasdaq Composite fell 140.19 points (-1.27%) to 10,910.28 points.

The Labor Department announced an hour before the opening a drop in weekly jobless claims but they remain nearly four times higher than at the start of the year.

And these figures have reinforced the doubts of some investors after the statements Wednesday of Jerome Powell, the president of the Fed, on the recent signs of slowing of the recovery and the long road which remains to be covered before regaining full employment.

“Investors love it when the Fed cuts rates, but if the Fed says to keep rates low a little longer than expected, people start to worry about the state of the economy itself.” , explains Jake Dollarhide, Managing Director of Longbow Asset Management.

The general decline is more marked for technology stocks, the engine of the rebound of the last six months. Apple (-1.6%) and Amazon (-2.25%) were among the biggest drops in the S&P 500 and the Nasdaq, which entered the correction zone last week.

“The last week of August was incredible (for the tech giants, editor’s note) and I think we are currently in a rational profit-taking scenario,” Dollarhide notes.

General Electric stood out against the trend by climbing 4.4% after statements by CEO Larry Culp that the conglomerate is targeting positive free cash flow in the second half, thanks to recovery of results from aeronautical activities.

(French version Marc Angrand and Jean-Stéphane Brosse)


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