Dow closes more than 500 points lower and tech rout continues
CNN
US stocks sold off broadly Thursday as Wall Street continued to shed tech stocks.
US stocks sold off broadly Thursday as Wall Street continued to shed tech stocks. The Dow ended the day lower by 533 points, or 1.3%, retreating from a record high reached a day ago. The S&P 500 fell 0.8%. The Nasdaq Composite fell 0.7%, extending its losses after logging its worst day since 2022 on Wednesday. “A correction was overdue and no one will be surprised if the market regains its momentum by the end of earnings season,” wrote Louis Navellier, chairman of Navellier & Associates, in a Thursday note. Investors have this week moved out of the Magnificent Seven tech stocks that powered the market to repeated record highs this year. The shift comes after cooling inflation data and stronger-than-expected retail sales data bolstered expectations that the Federal Reserve will begin cutting sky-high interest rates as soon as September. Shares of smaller companies that tend to do well in a lower-rate environment began rallying last week, helping the Dow reach fresh highs. But small-cap stocks have pared back their gains in recent sessions: The Russell 2000, which tracks the performance of US small caps, fell 1.8% on Thursday. Shares of Nvidia, Microsoft, Meta Platforms, Amazon, Apple and Alphabet are on pace to close the week lower, while Tesla is on track to end slightly higher.
Nippon Steel is expected to re-file its application for a national security review by American regulators of its $15 billion takeover bid of US Steel, sources familiar with the matter told CNN on Tuesday, buying Japan’s largest steelmaker an additional 90 days to close its acquisition of an American rival after political opposition emerged in an election year.
So far, the attacks that targeted Iran-backed Lebanese militant group Hezbollah members through their pagers have had devastating consequences. At least nine people, including an eight-year-old girl, were killed, and at least 2,800 were wounded. Over 150 of those injured are in critical condition, according to the Lebanese health minister.