U.S. markets closed sharply lower on Thursday, amid renewed selling in the technology sector, as investors grew concerned that Democratic policies could slow the expansion of data centers. However, traders largely overlooked a Labor Department report showing an unexpected decline in initial jobless claims for the week ended October 31. The Labor Department said initial jobless claims fell to 189,000, a decrease of 6,000 from the previous week’s revised level of 195,000. Street had expected jobless claims to inch up to 196,000 from the 194,000 originally reported for the previous week. With the unexpected dip, jobless claims matched the multi-decade low of 189,000 set in the week ended July 18.
On the sectoral front, semiconductor stocks recorded particularly steep losses, with the Philadelphia Semiconductor Index plunging 12.3 percent to a nearly seven-month closing low. Computer hardware stocks also came under significant selling pressure, dragging the NYSE Arca Computer Hardware Index down 10 percent. Financial stocks also weakened sharply, with the NYSE Arca Broker/Dealer Index tumbling 4.3 percent and the KBW Bank Index slumping 3.6 percent.
Dow Jones Industrial Average plunged by 1,833.06 points or 3.44 percent to 51,523.06, Nasdaq slumped by 1,421.51 points or 5.52 percent to 24,314.99 and S&P 500 dragged by 334.89 points or 4.36 percent to 7,353.73.
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