Stocks Plunge; Dow Drops 167 Points
US stocks reverse course to finish lower; Dow finishes with triple-digit loss.
US stocks declined sharply on Thursday, as a renewed slide in technology drove the benchmark indexes lower.
The large-cap S&P 500 Index (NYSEARCA:SPY) fell 0.9% to close at 2,419.70. Nine of 11 sectors finished in the red.
Shares of information technology companies plunged 1.8% amid rotation on the sector front. Consumer stocks were also down more than 1%. Materials and industrials finished firmly lower.
On the opposite side of the ledger, financial stocks finished with gains of 0.7%. The S&P 500’s energy component also finished in positive territory.
Plunging technology shares drove the Nasdaq Composite Index (NYSEARCA:QQQ) sharply lower. The gauge fell 1.4% to close at 6,144.35, its lowest settlement in over a month.
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Meanwhile, the Dow Jones Industrial Average (NYSEARCA:QQQ) shed 167.58 points, or 0.8%, to close at 21,287.03.
A measure of 30-day volatility known as the CBOE VIX (NYSEARCA:VXX) skyrocketed on Thursday, posting its biggest one-day advance since May 17. The VIX reached a session high of 15.16, which would have marked the highest settlement since April. The so-called “fear gauge” closed up 14.1% at 11.44.
In commodities, oil prices extended their recovery to a sixth consecutive day, as bargain-hunters capitalized on oversold contracts. US West Texas Intermediate (WTI) futures reached a session high of $45.45 a barrel. They would later consolidate at $44.81 a barrel, up 0.2% from the previous close.
The Final Word: A volatile technology sector has undermined the Trump rally over the past two weeks. This trend is likely to continue as investors cycle out of riskier equities in the second half of the year.