US close: Dow loses more than 1,000 points as stocks plunge
US stocks tumbled by the close on Thursday, with the Dow losing more than 1,000 points, as market participants continued to digest the Federal Reserve's move to raise interest rates by half a point.
At the close the Dow Jones Industrial Average was down 3.12% at 32,997.97, while the S&P 500 lost 3.56% to 4,146.97 and the Nasdaq Composite was 4.99% weaker at 12,317.69.
The Dow closed 1,063.09 points lower on Thursday, reversing the gains it recorded in the previous session after the Federal Reserve confirmed its first 50-basis point rate hike in more than two decades.
“After a strong finish last night US markets look set to give up all their post Fed gains after opening lower earlier today,” said CMC Markets chief market analyst Michael Hewson.
“The Nasdaq 100 is leading the way lower, while weekly jobless claims posted a surprise rise to 200k, from 181k the week before.
“On the earnings front e-commerce companies are getting hammered after eBay, Shopify and Etsy all reported disappointing revenues and/or guidance numbers.”
Stocks were in the red at the open after rising for a third straight session on Wednesday on the back of an announcement that the US central bank had hiked its benchmark interest rate by 50 basis points.
The Fed also said it would start cutting its balance sheet in June.
However, investor sentiment, which got a boost during chairman Jerome Powell's news conference when he stated the Fed was "not actively considering" a larger 75 basis point rate hike, became somewhat more cautious at the start of trading on Thursday as traders continued to assess the Fed's ability to slow inflation without triggering a recession.
On the macro front, new unemployment claims rose to 200,000 in the seven days ended 30 April, according to the Department of Labor, up from a revised print of 181,000 in the previous week for the highest reading since mid-February.
On a non-seasonally adjusted basis, initial claims slipped 7,164 week-on-week to 196,962, with marked declines in California and Ohio, while the four-week moving average, which aims to strip out week-to-week volatility, came in at 1.41m - down 3,250 from the previous week's revised print.
In the corporate space, Shell slipped 0.05% on Wall Street even after it recorded its best quarterly profit since 2008, amid soaring commodity prices following Russia's invasion of Ukraine.
E-commerce platform provider Shopify plunged 14.91% after it reported a first quarter loss, and announced its acquisition of Deliver Inc in a $2.1bn deal.
On the upside, cereal giant Kellogg was ahead 3.5% after it beat expectations on first quarter earnings, and lifted its guidance.
Dow Jones - Risers
Dowdupont Inc. (DWDP) $30.52 0.00%
Honeywell International Inc. (HON) $230.94 0.00%
Merck & Co. Inc. (MRK) $88.01 -0.58%
Amgen Inc. (AMGN) $234.35 -0.74%
Chevron Corp. (CVX) $166.20 -0.79%
Coca-Cola Co. (KO) $64.51 -0.80%
International Business Machines Corporation (CDI) (IBM) $135.92 -1.08%
Verizon Communications Inc. (VZ) $47.84 -1.10%
Walmart Inc. (WMT) $152.74 -1.22%
Walgreens Boots Alliance, Inc. (WBA) $43.78 -1.53%
Dow Jones - Fallers
Salesforce.Com Inc. (CRM) $172.30 -7.11%
Nike Inc. (NKE) $118.63 -5.89%
Apple Inc. (AAPL) $156.77 -5.57%
Home Depot Inc. (HD) $299.11 -5.14%
Microsoft Corp. (MSFT) $277.35 -4.36%
Visa Inc. (V) $205.24 -4.33%
Intel Corp. (INTC) $44.60 -4.17%
Boeing Co. (BA) $150.47 -4.14%
American Express Co. (AXP) $171.01 -3.83%
Cisco Systems Inc. (CSCO) $49.61 -3.82%
S&P 500 - Risers
Albemarle Corp. (ALB) $236.50 9.76%
TripAdvisor Inc. (TRIP) $25.80 5.09%
Kellogg Co. (K) $70.23 3.51%
Booking Holdings Inc. (BKNG) $2,171.91 3.26%
Westrock Company (WRK) $54.19 2.71%
Twitter Inc (TWTR) $50.36 2.65%
Becton, Dickinson & Company (BDX) $259.75 2.41%
Centene Corp. (CNC) $84.82 2.30%
Charter Communications Inc. (CHTR) $456.20 1.75%
Pioneer Natural Resources Co. (PXD) $256.48 1.46%
S&P 500 - Fallers
Cognizant Technology Solutions Corp. (CTSH) $73.60 -12.75%
eBay Inc. (EBAY) $48.04 -11.72%
Hanesbrands Inc. (HBI) $12.71 -10.37%
Lincoln National Corp. (LNC) $59.02 -9.30%
Harley-Davidson Inc. (HOG) $37.39 -8.96%
Nucor Corp. (NUE) $140.82 -8.87%
Qorvo, Inc. (QRVO) $108.84 -8.80%
Align Technology Inc. (ALGN) $283.72 -8.74%
Apache Corp. (APA) $41.30 -8.63%
Intuit Inc. (INTU) $409.86 -8.50%
Nasdaq 100 - Risers
Booking Holdings Inc. (BKNG) $2,171.91 3.26%
Charter Communications Inc. (CHTR) $456.20 1.75%
Xilinx Inc. (XLNX) $194.92 0.00%
Maxim Integrated Products Inc. (MXIM) $103.14 0.00%
Shire Plc Ads (SHPG) $179.20 0.00%
Alexion Pharmaceuticals Inc. (ALXN) $182.50 0.00%
Mylan Inc. (MYL) $0.00 0.00%
Celgene Corp. (CELG) $108.24 0.00%
Cerner Corp. (CERN) $94.12 -0.26%
Citrix Systems Inc. (CTXS) $101.40 -0.29%
Nasdaq 100 - Fallers
Cognizant Technology Solutions Corp. (CTSH) $73.60 -12.75%
eBay Inc. (EBAY) $48.04 -11.72%
Mercadolibre Inc. (MELI) $913.22 -10.75%
Align Technology Inc. (ALGN) $283.72 -8.74%
Intuit Inc. (INTU) $409.86 -8.50%
Tesla Inc (TSLA) $873.28 -8.33%
Paypal Holdings Inc (PYPL) $85.43 -7.86%
Netflix Inc. (NFLX) $188.32 -7.69%
Amazon.Com Inc. (AMZN) $2,328.14 -7.56%
Nvidia Corp. (NVDA) $188.44 -7.33%