The Dow and the broader U.S. stock market took a hit on Thursday as momentum on Wall Street fizzled out.
Investors are busy focusing on companies’ financial results in what’s expected to be one of the worst earnings seasons in history. And the economic recovery, hopes for which had been spurred by improvements in economic data, isn’t looking so hot anymore either.
The Department of Labor reported an increase in first-time claims for unemployment benefits Thursday morning, the first such rise in 16 weeks.
The market has recovered from its historic pandemic selloff in March, thanks in large part to a strong rally in technology stocks. But it’s set to have one of its worst performances on Thursday.
The tech-heavy Nasdaq Composite finished down 2.3%. The S&P 500, the broadest measure of Wall Street, closed down 1.2%. It was their worst performance since June 26.
The Dow fell 1.3%, or 354 points, its worst day in two weeks.
Stocks weren’t the only assets in the red. The US dollar, as measured by the ICE US Dollar Index, fell 0.2% against its rivals. The index hit its lowest level since September 2018.
“It will take more than a day to determine, though it is possible the greenback may be losing some of its safe-haven appeal, as an uncertain economic outlook weighs,” Ronald Simpson, global currency analyst at Action Economics, wrote in a note to clients.