Stocks have moved sharply lower during trading on Thursday, with the major averages all moving to the downside following the mixed performance seen in the previous session.
The tech-heavy Nasdaq has shown another particularly steep drop, tumbling to its lowest intraday level in well over two months.
Currently, the major averages are just off their lows of the session. The Nasdaq is down 356.26 points or 1.6 percent at 22,548.32, the S&P 500 is down 86.37 points or 1.3 percent at 6,796.35 and the Dow is down 592.87 points or 1.2 percent at 48,908.43.
Weakness among tech stocks continues to weigh on Wall Street amid a slump by shares of Google parent Alphabet (GOOGL).
Alphabet is tumbling by 4.9 percent after the company reported better than expected fourth quarter results but forecast a sharp increase in capital spending in 2026.
Shares of Qualcomm (QCOM) have also plunged by 7.5 percent after the chipmaker reported fiscal first quarter earnings that exceeded estimates but provided disappointing guidance for the current quarter.
Tech stocks have moved sharply lower over the past few sessions amid concerns about valuations and the impact of artificial intelligence.
In U.S. economic news, a report released by the Labor Department showed first-time claims for U.S. unemployment benefits rose by much more than expected in the week ended January 31st.
The Labor Department said initial jobless claims climbed to 231,000, an increase of 22,000 from the previous week’s unrevised level of 209,000. Economists had expected jobless claims to inch up to 212,000.
With the bigger than expected increase, jobless claims reached their highest level since hitting 237,000 in the week ended December 6th.
The Labor Department also release a separate report showing job openings in the U.S. unexpectedly decreased to their lowest level in over five years in the month of December.
The Labor Department had originally been scheduled to release its more closely watched monthly jobs report on Friday.
However, due to the brief government shutdown that ended earlier this week, the report is now scheduled to be released next Wednesday.
Sector News
Gold stocks have moved sharply lower along with the price of the precious metal, resulting in a 5.7 percent nosedive by the NYSE Arca Computer Hardware Index.
Substantial weakness is also visible among computer hardware stocks, as reflected by the 3.9 percent plunge by the NYSE Arca Computer Hardware Index.
A steep drop by the price of crude oil is also contributing to considerable weakness among energy stocks, with the Philadelphia Oil Service Index and the NYSE Arca Oil Index tumbling by 3.9 percent and 2.4 percent, respectively.
Software, financial and pharmaceutical stocks are also seeing notable weakness, moving lower along with most of the other major sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Thursday. Japan’s Nikkei 225 Index slumped by 0.9 percent, while China’s Shanghai Composite Index fell by 0.6 percent.
The major European markets have also moved to the downside on the day. While the French CAC 40 Index is down by 0.7 percent, the U.K.’s FTSE 100 Index and the German DAX Index are both down by 0.9 percent.
In the bond market, treasuries have moved sharply higher in reaction to the latest U.S. jobs data. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 6.5 basis points at 4.210 percent.
Business News
U.S. Stocks Move Sharply Lower, Nasdaq Slumps To Two-Month Low
2026-02-05 15:59:49
