Shares fell on Thursday, indicating that technology stocks will lead to a decline in major indices as investors waited for gains and assessed new data on the US labor market.
The S&P 500 fell 0.8%, while the Dow Jones Industrial Average fell 0.7%. The Nasdaq Composite, which has had a lot of technology, has continued its decline since Wednesday, down 1.1%.
Unemployment claims (a representative of the layoffs) remained above the maximum of 695,000 pandemics prior to the coronavirus. New applications for unemployment benefits rose to 861,000 last week, halting a downward trend that had pointed to an improvement in the labor market. Economists had expected claims to dwindle.
Shares have taken a breather in recent sessions, having risen for much of 2021. Some investors have been surprised by a rapid rise in yields on government bonds, which appeared to affect the technology stocks that have benefited from years of low interest rates. Money managers are also concerned about high valuations.
Still, many investors remain optimistic about the stock outlook. They point to the likely arrival of more fiscal stimulus as a factor that will drive economic growth and gains in 2021, along with the reopening of sectors that have been hard hit by the pandemic.