Five of the biggest losers in the Dow Jones Industrial Average during Thursday’s negative market action were spread across sectors and have varying levels of risk. Markets were risk-off and investors weighed the good and the bad.
By 2:45 EDT all three major U.S. indices were down, with tech selling off the hardest. The S&P 500 was down 0.5% and as much as 0.9%. The Dow Jones Industrial Average was down 0.9%. The Nasdaq was down 0.8% and fell as much as 1.5%. Tech stocks have been hit hard in the past week or so as tech earnings roll in and valuations are stretched. Economic and virus-related headwinds had driven money into growth tech that can often allude these headwinds.
But cyclical value was also pressured Thursday, even as the valuation gap between growth and value has widened. Retail sales for June grew more than 7% year over year, beating estimates of just over 5% growth. But investors are also noticing an uptick in virus cases, states pausing reopenings and a Congress moving slowly on a third round of fiscal stimulus, which needs to work in tandem with already low interest rates. The consumer discretionary sector was pressured all day.
Healthcare was also down almost 1%, as polls show Joe Biden gaining support over President Donald Trump. While the stock market has risen as President Trump’s election chances have fallen, that has largely been because of the economic recovery. But Biden does pose the threat of higher corporate taxes, an immediate and drastic earnings negative.
Still, not all sectors were down. Consumer staples were hanging around flat. Jobless claims for the past week showed little improvement for the third time in recent weeks. Claims were 1.3 million and are having trouble moving lower from that mark, pressuring sentiment.
Here were the 5 biggest losers on the Dow as of 2:45: