The Nasdaq tumbled on Thursday as investors sold off big name tech stocks like Apple and Amazon.
Investors concerned about inflation sought safety in defensive stocks like utilities and consumer staples and real estate.
The Dow eked out a minor gain. The S&P 500 declined a third of a percent, and the Nasdaq lost seven-tenth percent.
Thomson Reuters Stocks Buzz Analyst Terence Gabriel says the recent weakness of a leading indicator – semiconductor stocks – could mean trouble for the broader market.
“This sudden, rapid underperformance of chip stocks relative to the (Nasdaq) Composite is another warning sign because in the past, these kinds of divergences have preceded significant periods of market instability.”
Netflix hired a former Facebook executive to head its video games unit in a bid to expand beyond its streaming business. UBS raised its price target on the stock. But shares reversed course to end almost 1% lower.
Shares of Morgan Stanley inched higher. Its quarterly profit and revenue rose as strong results from its investment banking business offset a slump in fixed income trading.
Another blow for one of America’s most well-known brands: Johnson & Johnson voluntarily recalled five aerosol sunscreen products after detecting a carcinogen in some samples. This comes as the company’s one-shot vaccine that some viewed as a game-changer in the fight against COVID-19 has not only been hurt by production problems but has also been linked to two very rare side effects. The company already faces billions of dollars in potential court losses and settlements from damages related to its baby powder, vaginal mesh implants and opioid painkillers.Shares of the consumer products giant shed more than 1%.