U.S. stock markets closed lower on Wednesday as the sell-off intensified in high-flying technology growth stocks. Moreover, several disappointing economic data also dented investors’ confidence. All the three major stock indexes ended the day in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 3.09 points, closing at 32,420.06, continuing its two-day losing streak. Notably, 15 components of the 30-stock index ended in red while 15 finished the day in green.
The tech-heavy Nasdaq Composite closed the day at 12,961.89, down 2% or 265.81 points, maintaining its two-day losing streak, on the back of weak performance by large-cap technology stocks. The S&P 500 lost 0.6%, closing the day at 3,889.14, continuing its losses from Tuesday’s session. The Communication Services Select Sector SPDR (XLC) and the Consumer Discretionary Select Sector SPDR (XLY) dipped 2.5% and 1.5%, respectively. Notably, six out of eleven sectors of the benchmark index closed in the negative zone and five in green.
The fear-gauge CBOE Volatility Index (VIX) was up 4.4% to 21.20. A total of 12.72 billion shares were traded on Wednesday, lower than the last 20-session average of 14.0 billion. Decliners outnumbered advancers on the NYSE by a 1.32-to-1 ratio. On Nasdaq, a 3.17-to-1 ratio favored declining issues.
Technology Stocks Lead Wall Street Lower
Wall Street moved lower on Wednesday amid a sell-off in high-flying technology growth stocks, as the market rotation out of such stocks continued. Notably, shares of heavyweight technology names like Facebook, Inc.
FB
, Apple Inc.
AAPL
and Alphabet Inc.
GOOGL
fell 2.9%, 2% and 0.4%, respectively. Apple carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Durable Goods Orders Fell in February
Investors’ sentiment also took a hit as the U.S. Census Bureau reported that new orders for manufactured durable goods fell after nine consecutive months of increase. Notably, durable goods orders decreased 1.1% in February, compared to 3.5% growth in January (revised), missing the consensus estimate of 0.5% increase.
Crude Inventories Rose Last Week
The Energy Information Administration reported that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) for the week ending Mar 19, increased by 1.9 million barrels per day from the previous week. Moreover, crude oil inventories are above the five-year average by about 6%.
Other Economic Data
The IHS Markit’s flash U.S. Manufacturing PMI came in at 59 in early-March compared to 58.6 in February. Meanwhile, the flash U.S. Services Business Activity Index was reported at 60 in early-March, compared to 59.8 in February.
Stocks That Have Made Headline
Telefonica Unit Inks Deal, Combines IoT & Blockchain
In a concerted effort to maintain the authenticity of crucial information in today’s digital era, Telefonica, S.A.’s
TEF
subsidiary, Telefonica Tech, recently announced a partnership with Fibocom Wireless Inc. and aitos.io. (
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)
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