MARKET SNAPSHOT: Nasdaq Slumps Over 2% As Apple Leads Abrupt Tech Selloff
Gains in energy, financials limit the broader market's decline
The Nasdaq slumped more than 2% on Friday, retreating from an early record and turning sharply lower for the week, as the technology sector abruptly fell late in the session on profit-taking after recent gains.
The Dow remained in positive territory for the day while the S&P 500 turned slightly lower as gains in both financial and energy shares offset the carnage in tech names. All three were off their highs of the session, highs that represented intraday records for the trio.
The Dow Jones Industrial Average rose 42 points, or 0.2%, to 21,225. The S&P 500 slid 5 points, or 0.2%, to 2,428. The Nasdaq Composite Index sank 157 points, or 2.5%, to 6,164.
The Nasdaq had moved higher in morning trading, at one point trading as high as 6,341.70, meaning an intraday swing of more than 100 points. Friday marked the biggest one-day decline for the Nasdaq since May 17, when it tumbled more than 2.5%.
The sudden tech retreat pushed the Nasdaq into negative territory for the week. It had previously looked to close with a weekly gain of 0.5%; currently, it is looking at a decline of 1.7%. The S&P 500 is on track for a weekly decline of 0.5% while the Dow is flat for the week.
Apple Inc. (AAPL) tumbled 3.5% in its biggest one-day drop since April 2016. The overall technology sector (XLK) fell 2.3%. Other major tech stocks were also sharply lower. Facebook Inc.(FB) fell 3% while Alphabet Inc. (GOOGL), the parent of Google, was down 2.8%.
All three stocks have been among the biggest boosts to the market in 2017, gaining more than 25%.
"All these stocks have hit new highs recently, so now people are taking a pause and we're seeing the money flow out," said Doug DePietro, managing director for trading at Evercore ISI. "There's nothing in the news that's saying, 'sell the big tech stocks'; this is just simple profit-taking, a rotation to other names."
The Russell 2000 index of small-cap shares rose 0.5% on Friday, bringing its week-to-date gain to 1.2%.
Deeper losses were limited by the energy and financial industries, both of which advanced on the day. Energy shares gained 2.3% while financials (XLF) were up 1.6%.
J.P. Morgan Chase & Co.(GS) and Bank of America Corp.(BAC) climbed more than 2%. Exxon Mobil (XOM) added 1.6% while Chevron Corp.(CVX) was up 2.1%.
See:'Worst possible outcome'--analysts react to U.K. early election results (http://www.marketwatch.com/story/worst-possible-outcome-analysts-react-to-uk-early-election-results-2017-06-08)
Next up, Fed meeting: Traders see a 95.8% probability of a U.S. interest rate increase at the conclusion of the Federal Reserve's two-day policy meeting next week on June 14, CME Group's FedWatch showed (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html/).
The only top-tier economic data scheduled for release Friday is an update on wholesale inventories for April, due at 10 a.m. Eastern Time.
Stocks on the move: Shares of Endo International PLC(ENDP) slumped 15% after the Food and Drug Administration late Thursday said it asked the company to stop selling its opioid pain medication (http://www.marketwatch.com/story/fda-asks-endo-to-stop-selling-opioid-in-first-such-move-2017-06-08), reformulated Opana ER, citing concerns about abuse.
DuPont Fabros Technology Inc.(DFT) soared 9.7% after the developer and operator of multitenant data centers announced a deal to be purchased by (http://www.marketwatch.com/story/dupont-fabross-stock-soars-toward-record-after-digital-realty-buyout-deal-2017-06-09)Digital Realty Trust Inc (http://www.marketwatch.com/story/dupont-fabross-stock-soars-toward-record-after-digital-realty-buyout-deal-2017-06-09).(DLR) Digital Realty was down 3.4%.
Other markets: The British pound sank to a seven-week low against the dollar, dropping to $1.2711 from $1.2957 in late trading on Thursday. The dollar was firmer across the board (http://www.marketwatch.com/story/dollar-rises-pound-hits-7-week-low-as-uk-heads-for-hung-parliament-2017-06-09), with the U.S. dollar index , which compares the dollar to a half-dozen major rivals, up 0.4%.
Crude oil prices (http://www.marketwatch.com/story/oil-prices-pinned-down-by-strong-dollar-supply-worries-2017-06-09) traded higher, while gold settled lower.
In Asia (http://www.marketwatch.com/story/nikkei-returns-to-20000-as-asian-markets-warily-eye-uk-election-2017-06-08), the Nikkei 225 index gained on yen weakness, returning to the 20,000 level, with other markets mixed.
--Barbara Kollmeyer contributed to this report.
(END) Dow Jones Newswires
June 09, 2017 15:15 ET (19:15 GMT)