US Stocks Sell Off, Major Indexes Close Sharply Lower Thursday

The Dow Jones Industrial Average closed at 31,402.01 on Thursday with a loss of 559.85 points or -1.75%. The S&P 500 closed at 3,829.34 for a loss of 96.09 points or -2.45%. The Nasdaq Composite closed at 13,119.43 for a loss of 478.54 points or -3.52%. The VIX Volatility Index was higher at 28.89 for a gain of 7.55 points or 35.38%.

Thursday’s Market Movers

The major U.S. indexes ended sharply lower Thursday. Stocks fell as investors again considered yield tradeoffs. Mortgage rates showed an increase according to Freddie Mac’s weekly mortgage market survey. The 30-year fixed-rate mortgage averaged 2.97%, up from 2.81%. The 15-year fixed-rate mortgage averaged 2.34%, up from 2.21%. In the Treasury market, the 10-year Treasury increased to an annualized yield of 1.54% from 1.38% on Wednesday. The 30-year Treasury bond ended with a yield of 2.263%.

The Bureau of Economic Analysis reported its second estimate for fourth quarter gross domestic product (GDP), which improved to 4.1% from 4.0% in the advance estimate. Jobless claims were lower with 730,000 Americans filing, down from 841,000 in the previous week. Continuing jobless claims were 4.419 million, down from 4.520 million.

In other news:

  • President Joe Biden signed an executive order focused on reviewing supply chains, particularly for semiconductors.
  • Verizon (NYSE:VZ), AT&T (NYSE:T) and T-Mobile (NASDAQ:TMUS) spent a combined $80 billion in auction for 5G communications.
  • AT&T (NYSE:T) announced a spinoff of DirecTV.
  • The Kansas Fed Manufacturing Index increased to 26 in February from 22.
  • Durable goods orders increased 3.4% in January following an increase of 1.2%. Durable goods orders excluding defense increased 2.3% and durable goods orders excluding transportation increased 1.4%.
  • Pending home sales decreased -2.8% in January and 13% year over year.
  • The Treasury held auctions for 4-week bills at a rate of 0.035%, 8-week bills at a rate of 0.040% and 7-year notes at a rate of 1.195%.

Across the board:

  • GameStop (NYSE:GME) gained 18.57%
  • Twitter (NYSE:TWTR) gained 3.71%
  • Moderna (NASDAQ:MRNA) gained 2.48%
  • Nvidia (NASDAQ:NVDA) was down -8.22%
  • Tesla (NASDAQ:TSLA) was down -8.06% with halted Model 3 production in California.
  • Best Buy (NYSE:BBY) was down -9.33%. Revenue of $16.9 billion increased 11.2% year over year and missed estimates by $310 million. Q4 GAAP EPS of $3.10 missed estimates by $0.39 and non-GAAP EPS of $3.48 beat estimates by $0.03.
  • DoorDash (NYSE:DASH) was down -5.34%. Revenue of $970 million increased 225.5% year over year and beat estimates by $28.24 million. Q4 GAAP EPS of -$2.67 missed estimates by $2.00.
  • Boeing (NYSE:BA) was down -5.62%
  • iShares PHLX Semiconductor ETF (SOXX) was down -5.70%

Small-Cap Stocks

In small-caps, the Russell 2000 closed at 2,200.17 for a loss of 84.21 points or -3.69%. The S&P 600 closed at 1,283.73 for a loss of 40.03 points or -3.02%. The Dow Jones U.S. Small-Cap Growth Index closed at 14,836.94 for a loss of 644.61 points or -4.16%. The Dow Jones U.S. Small-Cap Value Index closed at 10,372.25 for a loss of 287.93 points or -2.70%.

Other Notable Indexes

Other notable index closes included the S&P 400 Mid-Cap Index at 2,498.69 for a loss of 79.01 points or -3.07%; the S&P 100 at 1,739.70 for a loss of 44.54 points or -2.50%; the Nasdaq 100 at 12,828.31 for a loss of 473.88 points or -3.56%; the Russell 3000 at 2,311.18 for a loss of 62.64 points or -2.64%; the Russell 1000 at 2,167.41 for a loss of 56.93 points or -2.56%; the Wilshire 5000 at 40,344.10 for a loss of 1,086.14 points or -2.62%; and the Dow Jones US Select Dividend Index at 761.28 for a loss of 15.83 points or -2.04%.

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About the author:

Julie Young

Julie Young is a financial writer with comprehensive experience in the financial services industry. She writes about investments, investment products, financial market news and economic trends. Julie has a Master of Science in finance from Boston College and a Bachelor of Science in finance from the University of Arkansas.

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