After moving sharply lower early in the session, stocks regained some ground over the course of the trading day on Thursday. The major averages climbed well off their early lows but remained firmly in negative territory.
The S&P 500 fell as much as 1.0 percent in early trading but ended the day more moderately lower, down 26.63 points or 0.4 percent at 19,962.36. The Nasdaq also slid 93.89 points or 0.5 percent to 19,962.36 after tumbling as much as 1.3 percent.
The narrower Dow posted a more significant loss, slumping 450.94 points or 1.0 percent to 44,176.65.
The early sell-off on Wall Street came amid a slump by shares of Walmart (WMT), with the retail giant and Dow component plunging by 6.5 percent.
Walmart came under pressure after the company reported better than fiscal fourth quarter earnings but provided disappointing guidance for the current year.
Traders may also been looking to cash in on the recent upticks by stocks, which lifted the S&P 500 to record highs despite ongoing tariff concerns and indications the Federal Reserve is likely to keep interest rates on hold for some time.
On the U.S. economic front, a report released by the Labor Department showed a modest increase by first-time claims for U.S. unemployment benefits in the week ended February 15th.
The Labor Department said initial jobless claims rose to 219,000, an increase of 5,000 from the previous week’s revised level of 214,000.
Economists had expected jobless claims to inch up to 215,000 from the 213,000 originally reported for the previous week.
The Federal Reserve Bank of Philadelphia also released a report showing Philadelphia-area manufacturing activity continued to expand in the month of February, although the index of activity in the sector pulled back sharply.
Sector News
Financial stocks turned in some of the market’s worst performances, with the KBW Bank Index and NYSE Arca Broker/Dealer Index tumbling by 2.4 percent and 1.9 percent, respectively.
The nosedive by shares of Walmart also weighed on the retail sector, as reflected by the 1.9 percent loss posted by the Dow Jones U.S. Retail Index.
Meanwhile, gold and oil producer stocks moved to the upside on the day amid increases by the prices of their associated commodities.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Thursday. Japan’s Nikkei 225 Index slumped by 1.2 percent, while Hong Kong’s Hang Seng Index tumbled by 1.6 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the French CAC 40 Index rose by 0.2 percent, the German DAX Index fell by 0.5 percent and the U.K.’s FTSE 100 Index slid by 0.6 percent.
In the bond market, treasuries moved to the upside after ending the previous session roughly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 3.5 basis points to 4.50 percent.
Looking Ahead
Trading on Friday may be impacted by reaction to the latest U.S. economic data, including a report on existing home sales and a revised reading on consumer sentiment.
Business News
U.S. Stocks Climb Off Early Lows But Remain Firmly Negative
2025-02-20 21:12:03
