Technology sector resumes its selloff
U.S. stocks tumbled on Thursday, 29 June 2017 with the S&P 500 and Dow industrials logging their worst one-day declines since May as the technology sector resumed its selloff, overshadowing advances in financials.
The Dow Jones Industrial Average fell 167.58 points, or 0.8%, to 21,287.03, its biggest percentage decline since May 17. The S&P 500 index declined 20.99 points, or 0.9%, to 2,419.70, also its worst selloff in more than a month. The Nasdaq Composite tumbled 90 points, or 1.4% to 6,144.35.
The S&P 500 opened Thursday's session with a slim gain, but immediately started trending downward as the bearish sentiment within the technology sector caught fire in the broader market. Only two sectors, financials and energy were able to dodge the wave of selling pressure and finish the day in positive territory. As for the laggards, the technology space led the retreat with a big decline.
The weaker dollar was seen as giving a boost to some dollar-denominated commodities, such as oil and copper, on Thursday. Those moves could aid resource-related stocks on Wall Street.
In the latest economic data, the latest revision to first-quarter GDP was raised to 1.4%, up from the previous estimate of 1.2% and double the initial 0.7% read. Separately, jobless claims rose by 2,000 in the latest week, although they remain at levels that are extremely low from a historical standpoint.
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On the Fed front, St. Louis Fed President James Bullard said the current level of interest rates is appropriate for the low-growth, tepid inflation environment and the central bank doesn't need to act in response to future developments. Bullard isn't on the Fed's current rate-setting board. His comments capped a busy week of central-bank speakers.
Bullion prices ended lower at Comex on Thursday, 29 June 2017. Gold prices ended lower on Thursday as a global rise in government bond yields diminished the appeal of investing in precious metals that don't bear interest.
Gold for August delivery on Comex slipped $3.30, or 0.3%, to settle at $1,245.80 an ounce, after notching back-to-back gains on Wednesday. September silver ticked down by 13.7 cents, or 0.8%, to $16.654 an ounce.
Moves were fueled in part by a world-wide selloff in bonds that pushed prices of sovereign paper lower and yields higher. Yields on U.S. Treasurys, notably the 10-year note, and European bonds, like the comparable German bond shot to their highest levels in more than a month. A rise in yields can undercut appetite for metals like gold and silver.
Crude-oil prices tallied a sixth-straight gain on Thursday, 29 June 2017 a day after U.S. data revealed a sizable weekly decline in domestic crude production. Meanwhile, prices for natural gas settled lower, pulling back after a five-session rally, despite data showing a smaller-than-expected weekly rise in U.S. stockpiles of the fuel.
August West Texas Intermediate crude added 19 cents, or 0.4%, to settle at $44.93 a barrel on the New York Mercantile Exchange. That was the highest finish since 13 June. Brent oil for August delivery which expires at Friday's settlement, rose 11 cents, or 0.2%, to $47.42 a barrel on the ICE Futures Europe exchange.
On Friday, investors will receive several economic reports, including May Personal Income and Personal Spending (consensus 0.3%; 0.1%) at 8:30 ET, June Chicago PMI (consensus 57.8) at 9:45 ET, and the final reading of the University of Michigan Consumer Sentiment Index for June (consensus 94.7) at 10:00 ET.
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