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Wall Street closed lower on Friday, dragged down by tech stocks. Chip stocks weighed on the markets, while a resilient labor market report brought some cheer. All three major stock indexes ended in the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 68.66 points, or 0.2%, to close at 38,722.69. Seventeen components of the 30-stock index ended in negative territory, while 13 ended in positive.
The tech-heavy Nasdaq Composite plunged 188.26 points, or 1.2%, to close at 16,085.11.
The S&P 500 lost 33.67 points, or 0.7%, to close at 5,123.69. Seven of the 11 broad sectors of the benchmark index closed in the red. The Technology Select Sector SPDR (XLK), the Consumer Staples Select Sector SPDR (XLP) and the Materials Select Sector SPDR (XLB) declined 1.5%, 0.8% and 0.6%, respectively, while the Real Estate Select Sector SPDR (XLRE) advanced 1.2%.
The fear-gauge CBOE Volatility Index (VIX) increased 2.1% to 14.74. A total of 12.3 billion shares were traded on Friday, higher than the last 20-session average of 12.1 billion. Advancers outnumbered decliners by a 1.25-to-1 ratio on the NYSE. On the Nasdaq, declining issues outnumbered advancing ones by a 1.05-to-1 ratio.
Tech Sector Continues to Dominate Headlines
After the session started on a high note with a far better-than-expected jobs report, the tech sector, primarily the semiconductor segment, came down from intra-day highs to weigh on the market. The Philadelphia Semiconductor Index (SOX) fell 4% for the day.
The biggest decline from the segment came in from the toast of last season, NVIDIA Corporation (NVDA - Free Report) , which plunged 5.6%. This came on a day when it had, at one point, risen 5%. However, there is a wide consensus that the sector slumped not because of any particular reason but overall profit booking. Investor mood is generally upbeat, and it is expected that inflation will become benign. Rate cuts are being seen on the horizon, if not at hand.
Per the U.S. Bureau of Labor Statistics, total nonfarm payroll rose by 275,000 in February compared with a consensus of 194,000. The number for January was heavily revised down to 229,000 from the previously reported 353,000.
The unemployment rate, however, increased to 3.9% from the unrevised 3.7% reported in January.
Average Hourly Earnings came down to a 0.1% increase in February. The January number was revised to a 0.5% increase from the previously reported 0.6% rise.
Average Workweek increased to 34.3 in February from 34.2 in January.
Weekly Roundup
Last week, all of the three widely followed indexes closed in the red. The S&P 500, Dow Jones Industrial Average and the Nasdaq Composite declined 0.3%, 0.9% and 1.2%, respectively. The goings on in the market were dominated by Fed Chair Jerome Powell’s Congressional speech and the woes of the tech sector.
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Stock Market News for Mar 11, 2024
Wall Street closed lower on Friday, dragged down by tech stocks. Chip stocks weighed on the markets, while a resilient labor market report brought some cheer. All three major stock indexes ended in the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 68.66 points, or 0.2%, to close at 38,722.69. Seventeen components of the 30-stock index ended in negative territory, while 13 ended in positive.
The tech-heavy Nasdaq Composite plunged 188.26 points, or 1.2%, to close at 16,085.11.
The S&P 500 lost 33.67 points, or 0.7%, to close at 5,123.69. Seven of the 11 broad sectors of the benchmark index closed in the red. The Technology Select Sector SPDR (XLK), the Consumer Staples Select Sector SPDR (XLP) and the Materials Select Sector SPDR (XLB) declined 1.5%, 0.8% and 0.6%, respectively, while the Real Estate Select Sector SPDR (XLRE) advanced 1.2%.
The fear-gauge CBOE Volatility Index (VIX) increased 2.1% to 14.74. A total of 12.3 billion shares were traded on Friday, higher than the last 20-session average of 12.1 billion. Advancers outnumbered decliners by a 1.25-to-1 ratio on the NYSE. On the Nasdaq, declining issues outnumbered advancing ones by a 1.05-to-1 ratio.
Tech Sector Continues to Dominate Headlines
After the session started on a high note with a far better-than-expected jobs report, the tech sector, primarily the semiconductor segment, came down from intra-day highs to weigh on the market. The Philadelphia Semiconductor Index (SOX) fell 4% for the day.
The biggest decline from the segment came in from the toast of last season, NVIDIA Corporation (NVDA - Free Report) , which plunged 5.6%. This came on a day when it had, at one point, risen 5%. However, there is a wide consensus that the sector slumped not because of any particular reason but overall profit booking. Investor mood is generally upbeat, and it is expected that inflation will become benign. Rate cuts are being seen on the horizon, if not at hand.
Consequently, shares of ON Semiconductor Corporation (ON - Free Report) and Intel Corporation (INTC - Free Report) lost 4.8% and 4.7%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Per the U.S. Bureau of Labor Statistics, total nonfarm payroll rose by 275,000 in February compared with a consensus of 194,000. The number for January was heavily revised down to 229,000 from the previously reported 353,000.
The unemployment rate, however, increased to 3.9% from the unrevised 3.7% reported in January.
Average Hourly Earnings came down to a 0.1% increase in February. The January number was revised to a 0.5% increase from the previously reported 0.6% rise.
Average Workweek increased to 34.3 in February from 34.2 in January.
Weekly Roundup
Last week, all of the three widely followed indexes closed in the red. The S&P 500, Dow Jones Industrial Average and the Nasdaq Composite declined 0.3%, 0.9% and 1.2%, respectively. The goings on in the market were dominated by Fed Chair Jerome Powell’s Congressional speech and the woes of the tech sector.