Wall Street plunged on Wednesday over concerns that the spread of the delta coronavirus variant could slow economic growth and over uncertainty over the timeline for the Federal Reserve to roll back its accommodative policies.
Shares of the tech heavyweight were down between 0.1% and 0.6%, with Microsoft Corp., Facebook Inc. and Google owner Alphabet Inc.
Nine out of eleven sub-sectors fell with major declines in economy-sensitive sectors such as industry, materials and real estate.
Gains in energy stocks helped limit some losses with Exxon Mobil, Chevron, Occidental Petroleum and Halliburton between 0.6% and 0.3% as oil prices jumped on lower output.
US stocks have come under pressure in recent days as investors became increasingly cautious after Friday’s weak August payrolls data and uncertainty over the Fed’s tapering off.
“The bigger question is the uncertainty around the level of economic growth slowdown, thinning and the potential for rising inflation,” said Sam Stovall, chief investment strategist at CFRA.
“Investors are thinking they don’t want to be overly exposed to potential growth areas, instead showing interest in the safety of tech stocks.”
St. Louis Federal Reserve Bank President James Bullard told the Financial Times that the US Federal Reserve should move forward with plans to trim its massive pandemic stimulus program despite a slowdown in job growth.
Stovall said CFRA economists are lowering growth projections for the third quarter, but were still optimistic for the broader economy to grow for the rest of the year.
The S&P 500 and Nasdaq have risen nearly 20% so far this year on the back of easing central bank policies, but a surge in coronavirus infections and weak economic data have raised concerns over the pace of the economic recovery.
At 10:17 am, the Dow Jones Industrial Average was down 11.74 points, or 0.03%, at 35,088.26, the S&P 500 was down 2.96 points, or 0.07%, at 4,517.07 and the Nasdaq Composite was down 43.66 points, or 0.28 points. %, at 15,330.67.
Perigo Co. plc jumped 6.1% when the drugmaker said it plans to buy HRA Pharma from investment firms Astor and Goldman Sachs Asset Management in a deal worth 1.8 billion euros ($2.13 billion).
Cryptocurrency exchange Coinbase Global Inc fell 3.5% after the US securities regulator threatened to sue the firm if it goes ahead with plans to launch a crypto loan scheme.
The decline issues to a 1.29-to-1 ratio on the NYSE and a 2.13-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and one new low, while the Nasdaq recorded 31 new highs and 16 new lows. (Reporting by Shashank Nair in Bengaluru; Editing by Anil D’Silva and Arun Koyur)
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