US stocks: S&P, Nasdaq fall as Apple drags, jobless claims data fuels rate jitters

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NEW YORK: The S&P 500 and Nasdaq fell on Thursday, with the largest drag from Apple and a sell-off in chip shares over considerations about China’s iPhone curbs, whereas a fall in weekly US jobless claims fed worries about rates of interest and sticky inflation.
Shares in S&P heavyweight Apple Inc fell 2.9%, for its second straight day of losses on information that China had widened curbs on iPhone use by state staff, requiring employees at some central authorities companies to cease utilizing their mobiles at work.
Bloomberg reported that China deliberate to broaden the iPhone ban to state corporations and companies.
The drag from Apple, its suppliers and corporations with giant China publicity pushed the S&P 500 know-how sector down 1.6%, making it the largest share decliner among the many benchmark’s 11 main sectors.
A US Labor Division report confirmed the variety of Individuals submitting for unemployment claims fell to 216,000 for the week ended Sept. 2, hitting the bottom degree since February. However traders fearful this might assist push the Federal Reserve to proceed with tight financial coverage, pressuring shares.
“The weekly claims was huge information this morning, excellent news being construed as unhealthy information and it is exhausting to disregard the information out of China” about Apple mentioned Sahak Manuelian, managing director and head of fairness buying and selling at Wedbush Securities.
Buyers had been additionally warily anticipating inflation readings from August, due in every week.
Due partly to the latest sharp rise in oil costs, Manuelian pointed to “some fretting amongst traders that inflation may begin to decide up once more, which is not loopy.”
Bets on the Fed to go away rates of interest unchanged in September stood at 93%, but the probabilities for one more pause within the November assembly had been at a a lot decrease 53.5%, in line with the CME Group’s FedWatch Device.
“There may be that very, very small eye of the needle with which the Fed can thread financial coverage that is sufficiently tight, however not so tight that it wrecks the financial system. It is a small eye however, it isn’t fully closed,” mentioned Craig Fehr, head of funding technique at Edward Jones, who known as Thursday’s decline “a cautious defensive stance.”
Minutes earlier than the shut, New York Fed President John Williams mentioned it was an “open query” whether or not financial coverage is restrictive sufficient to carry the financial system again into stability. “We’ve received coverage in an excellent place, however we’re going to wish to proceed to be knowledge dependent,” he mentioned, pointing to imminent knowledge releases due earlier than the Fed’s September assembly.
The Dow Jones Industrial Common rose 57.54 factors, or 0.17%, to 34,500.73, the S&P 500 misplaced 14.34 factors, or 0.32%, to 4,451.14 and the Nasdaq Composite dropped 123.64 factors, or 0.89%, to 13,748.83.
The Dow outperformed the S&P and Nasdaq as a result of Apple has a decrease weighting within the cyclicals-heavy index, which is price-weighted in contrast with the market capitalization-weighted S&P 500, the place Apple is likely one of the greatest weights.
Defensive utilities was the largest gainer amongst S&P sectors, rising 1.3%, which Edward Jones’ Fehr took as one other signal of the market’s risk-off temper.
The Philadelphia semiconductor index fell 1.98% whereas shares of Apple suppliers together with Skyworks Options, Qualcomm and Qorvo all fell greater than 7%.
Rick Meckler, companion at Cherry Lane Investments mentioned the information from China refocused traders on the thought “that the connection between the US and China is an enormous threat to present fairness costs, notably in know-how.”
Additionally denting sentiment in regards to the world’s second-largest financial system, knowledge confirmed China’s exports and imports fell in August.
Shares of US-listed Chinese language corporations PDD Holdings , and Alibaba fell greater than 4% whereas and Baidu misplaced 3.4%. Additionally serving to to maintain the Dow afloat was a 1% rise in McDonald’s shares after Wells Fargo upgraded the inventory to “chubby”.
Automation software program agency UiPath rallied 11.5% on an upbeat annual income forecast.
Declining points outnumbered advancing ones on the NYSE by a 1.80-to-1 ratio; on Nasdaq, a 2.03-to-1 ratio favored decliners.
The S&P 500 posted 13 new 52-week highs and 26 new lows; the Nasdaq Composite recorded 22 new highs and 268 new lows.
On US exchanges 9.76 billion shares modified palms in contrast with the ten.10 billion transferring common for the final 20 classes.

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