At the close of trade, the Dow Jones Industrial Average index fell 3.09 points or 0.01% to 32,420.06 and the S&P 500 dropped 21.38 points or 0.55% to 3,889.14. The tech-heavy Nasdaq Composite Index declined 265.81 points or to 2.01% 12,961.89.
The weakness on Wall Street emerged on lingering concerns about the outlook for high-growth companies. investors sold last year's big performers, the technology shares that doubled the Nasdaq index from year-ago lows, and bought the underpriced value-oriented stocks poised to do well in the recovery.
Investors have focused on the yield on the benchmark 10-year Treasury note, pondering whether there is room for long-term interest rates to run. The 10-year Treasury yield dipped 3 basis points to 1.61% Wednesday (compared with 1.729% last Friday.), falling for a third day after the rate hit a 14-month high last week.
Shares of technology companies led led decliners on the S&P 500 and the Nasdaq. Apple Inc, Tesla Inc, Amazon.com Inc, Facebook Inc and Microsoft Corp ended lower. Intel Corp shares retreated 2.3% after earlier gains as the company, in its efforts to expand chipmaking capacity, announced plans to spend as much as $20 billion to build two factories in Arizona and open its factories to outside customers.
GameStop Corp tumbled 33.8% after the videogame retailer said it might cash in on a meteoric rise in its share price to fund its e-commerce expansion.
ECONOMIC NEWS: US Durable Goods Orders Fall 1.1% In February-US durable goods orders slumped by 1.1% in February after spiking by an upwardly revised 3.5% in January, the Commerce Department reported on Wednesday. Orders for transportation equipment showed a notable pullback, tumbling by 1.6% in February after soaring by 7.5% in January. Partly reflecting ongoing plant shutdowns stemming from a global semiconductor shortage, orders for motor vehicles and parts plunged by 8.7%. Excluding the steep drop in orders for transportation equipment, durable goods orders still fell by 0.9% in February after surging up by 1.6% in January.
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