Nasdaq falls 2.5%+ as techs tumble

Producer Price Index jumped by record 9.7% in December

U.S. stocks dropped as technology shares took a back seat to cyclical names and as investors digested a jump in producer prices and higher jobless claims.

The Nasdaq Composite lost 2.5%, while the S&P 500 dipped 1.4% and the Dow Jones Industrial Average slipped 0.5% or 175 points. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 35911.81 -201.81 -0.56%
SP500 S&P 500 4662.85 +3.82 +0.08%
I:COMP NASDAQ COMPOSITE INDEX 14893.75271 +86.94 +0.59%

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Microsoft and Salesforce fell in broad tech weakness, while Boeing and Caterpillar rose in the cyclical trade. 

Ticker Security Last Change Change %
MSFT MICROSOFT CORP. 310.20 +5.40 +1.77%
CRM SALESFORCE.COM INC. 231.23 +2.60 +1.14%
BA THE BOEING CO. 225.96 +2.06 +0.92%
CAT CATERPILLAR INC. 228.94 +1.94 +0.85%

In economic data, the December producer price index jumped by 9.7% a record, while month-over-month prices rose 0.2%, less than expected. Factoring out volatile food and energy costs, core producer prices rose 0.5% in December, slightly below November’s 0.7% gain. Year-over-year look core PPI rose 8.3% in December.

On Wednesday consumer prices rose 7% the most since 1982. 

INFLATION SURGES 7% IN DECEMBER, HIGHEST RATE IN 40 YEARS

New claims for unemployment benefits unexpectedly rose by 230,000 last week and above a 52-year low of 188,000 reported in the first week of December. Continuing claims, which track the total number of unemployed workers collecting benefits, fell to 1.55 million. 

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In other stocks, Ford rallied to a new milestone topping the $100 billion in market value, compared to General Motors $91 billion. 

Ticker Security Last Change Change %
F FORD MOTOR CO. 25.19 +0.17 +0.68%
GM GENERAL MOTORS CO. 61.10 -0.67 -1.08%

Delta Airlines also rose after CEO Ed Bastian signaled a recovery by mid-first quarter after the airline posted a loss of $408 million tied to COVID disruptions. 8,000 of his employees have tested positive for the virus. United Airlines also disclosed 3,000 of its employees were infected resulting in flight cancellations. 

Ticker Security Last Change Change %
DAL DELTA AIR LINES INC. 40.31 -1.16 -2.80%
UAL UNITED AIRLINES HOLDINGS INC. 46.74 -1.43 -2.97%

Taiwan Semiconductor is a winner after posting record quarterly profits and forecasting revenue of as much as $17 billion, higher than the same period a year ago. 

Ticker Security Last Change Change %
TSM TAIWAN SEMICONDUCTOR MANUFACTURING CO. LTD. 140.66 +1.47 +1.06%

RIchard Branson's Virgin Orbit has a satellite launch later this afternoon, while Virgin Galactic rolled out a $425 million bond offering. 

Ticker Security Last Change Change %
VORB NEXTGEN ACQUISITION II 8.54 -0.85 -9.10%
SPCE VIRGIN GALACTIC HOLDINGS INC. 10.14 +0.11 +1.10%

AMC shares dropped after CEO Adam Aron said he was done selling big chunks of stock.

Ticker Security Last Change Change %
AMC AMC ENTERTAINMENT HOLDINGS INC 20.57 -0.09 -0.44%

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Vaccine makers continue to report developments with Moderna disclosing it will release data for treating children 2 to 5 years of age by March. 

Ticker Security Last Change Change %
MRNA MODERNA INC. 204.73 -5.44 -2.59%

In commodities, oil slipped to the $81-per-barrel level. 

Ticker Security Last Change Change %
USO UNITED STATES OIL FUND L.P. 59.97 +1.70 +2.92%

 Cryptocurrencies saw more downward pressure with Bitcoin slipped. 

In Europe, London's FTSE slipped 0.2%, Germany's DAX was off 0.2% and France's CAC declined 0.5%.

In Asia, Tokyo's Nikkei 225 index dropped 1%, the Hang Seng in Hong Kong edged 0.1% higher, while China's Shanghai Composite shed 1.2%.

FOX Business' Ken Martin and The Associated Press contributed to this report.