Dow Trips on Tech Wreck as Volatility Strike Backs By

Dow Trips on Tech Wreck as Volatility Strike Backs By

© Reuters.

By Yasin Ebrahim – The Dow fell sharply on Thursday, as a jolt of volatility swept through Wall Street amid a plunge in big tech stocks and mixed economic data.

The fell 2.86%, or 832 points, the was down 3.61%, while the slumped 4.94%.

Tech stocks, which have led the recent market rally, demonstrated their hold over the market once again as a slide in mega-cap tech stalwarts prompted investors to cut their bullish bets on stocks.

Apple (NASDAQ:) fell nearly 7% to lead the move lower in the Fab 5 stocks, with Microsoft (NASDAQ:), (NASDAQ:), Facebook (NASDAQ:) and Alphabet (NASDAQ:) each down more than 4%.

A sharp rise in volatility also rattled investors, with the , the so-called fear index, surging 25% to a nearly two-month high.

Energy, meanwhile, was the only sector in the green even as oil prices struggled to turn positive as concerns over the strength of demand persist.

Better-than-expected jobs data and softer services growth did little to improve sentiment on the economic recovery a day ahead of the release of August’s nonfarm payrolls report.

The slowed to a reading of 56.9 last month, from 58.1 in July, missing economists’ forecasts for a reading of 57.

“The August ISM Non-Manufacturing report showed a modest decline to 56.9 from 58.1. Technically, this is the lowest level since the index began to improve coming out of the COVID-induced lockdowns in the Spring, but 56.9 is still a very strong outright reading,” Jefferies (NYSE:) said.

The U.S. Department of Labor reported Thursday that fell to 881,000 in the week ended Aug. 28, beating forecasts of 950,000.

In other news, Help desk software provider Pagerduty (NYSE:) saw its narrower-than-expected quarterly loss overshadowed by softer full-year guidance, sending its shares down 26%.

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