By Victor Reklaitis and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks slumped Thursday, led by
the tech sector, slapping the major benchmarks with their biggest
one-day loss in almost two months.
Why the drop? Strategists said there wasn't one single
explanation. Market observers, however, pointed to some possible
drivers including Apple Inc.(AAPL), whose own shares were down more
than 3%. Other worries centered on the Russia-Ukraine and Mideast
conflicts as well as a weak U.S. durable-goods report. Strategists
also cited divergences between suffering small-cap stocks and the
broader market and technical factors, including the S&P 500's
slicing through its 50-day moving average.
The S&P (SPX) slid 32.31 points, or 1.6%, to finish at
1,965.99. All S&P sectors endured losses.
The Dow Jones Industrial Average (DJI) also took a hit, falling
264.26 points, or 1.5%, to close at 16,945.80.
Both the S&P 500 and Dow suffered their biggest drops since
July 31, when they fell 2% and 317 points, respectively. That's
after both achieved record closes last week.
The technology sector was a particularly hard-hit area, faring
worst among S&P sectors, and the tech-heavy Nasdaq Composite
(RIXF) declining by 88.47 points, or 1.9%, to end at 4,466.75. The
Nasdaq's loss also was its largest since July 31.
Worries about durables, geopolitics: Orders for durable U.S.
goods plunged a record 18.2% in August after a record 22.5% gain in
July, mainly because of volatile demand for airplanes. Economists
surveyed by MarketWatch had expected orders to fall 17.3%.
The headline number for durable goods may have spooked some
investors, according to Doug Coté, chief market strategist at Voya
Investment Management. In addition, the report's encouraging
details, such as what it said about underlying business investment,
could put more pressure on the Federal Reserve to raise interest
rates, he argued. (Read more: Early days of a rate hike are
characterized by stock weakness:
http://www.marketwatch.com/story/get-ready-for-rising-interest-rates-and-stocks-2014-09-25.)
Then there's the matter of international conflict. "Geopolitical
risks have been overlooked, but the longer they go on without
resolution, the more concerning it gets," Cote noted.
Iraq's prime minister warned about plots by the Islamic State to
launch attacks on subway systems in New York City and Paris on
Thursday -- highlighting rising concerns about terrorist
organizations' growing global threat.
Meanwhile in Russia, courts there could receive the OK to seize
foreign assets under a draft law intended as a response to Western
sanctions over the Ukraine crisis, a Reuters report said
Thursday.
In other economic news, weekly jobless claims rose to 293,000,
while economists surveyed by MarketWatch had expected claims to
rise to 300,000.
Check out a recap of MarketWatch's stock market live blog
Movers and shakers: Shares in Apple dropped Thursday after the
company pulled an update to iOS 8 on Wednesday. Users had reported
major problems with the operating-system update, and Apple also is
dealing with complaints about the iPhone 6 Plus being susceptible
to bending. Check out: Apple's PR nightmare has turned into a
social-media joke.
The tech titan's slide of 3.8% was the second-worst performance
in the S&P 500, exceeded only by Allegheny Technologies
Inc.'s(ATI) 4.8% tumble.
(Read more about the day's notable stock moves here
http://www.marketwatch.com/story/jabil-nike-micron-in-spotlight-2014-09-25.)
Other markets: Japan's Nikkei Average surged 1.3% as the yen
weakened. Meanwhile, the euro (EURUSD) hit its lowest level against
the dollar since 2012 after European Central Bank President Mario
Draghi said the bank stands ready to launch more stimulus measures
to boost growth.
European stocks were dragged down by U.S. losses after initially
gaining following Draghi's comments. Gold futures(GCZ4) rose.
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