NEW YORK (TheStreet) -- U.S. stocks were sinking Thursday morning, with the declines mainly attributable to end-of-quarter profit taking, thinner volumes due to the Jewish holidays, and the unwinding of trades that were driven by dovish Federal Reserve speak during the prior session.
The Dow Jones Industrial Average
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All 10 sectors of the S&P 500 were in the red, with most posting a drop of more than 1%. The S&P 500 information technology sector was bearing the brunt of the negative action as both Apple (AAPL) and Yahoo! (YHOO) tumbled. The iPhone maker was down 3.53% after pulling its iOS 8.0.1 update mere hours after releasing it. Yahoo! fell 1.76% after revealing that it agreed to a one-year lock-up period that restricts the sale of the remaining ordinary shares it owns in Alibaba (BABA) .
"The fact that we've seen a bit of a rotation with equities weakening and bond markets strengthening provides some clues that there's been a reallocation of trades, which tends to happen when you take profits," said Millan Mulraine, deputy head of U.S. research and strategy at TD Securities. The fairly thin market was also impacting liquidity in the equity markets.
"(Atlanta Fed Bank President Dennis) Lockhart could be the next trigger point for the market as it relates to the Fed," Mulraine said.