Technology companies led a slide in U.S. stocks early Thursday afternoon as the market gave up some of its gains from the day before. Utilities, real estate companies and other high-dividend stocks also fell as bond yields rose. Banks were up the most after the Federal Reserve said they can buy back more stock and raise their dividends. Energy stocks also rose as oil prices headed higher.
KEEPING SCORE: The Standard & Poor’s 500 index fell 20 points, or 0.8 percent, to 2,420 as of 12:44 p.m. Eastern time. The Dow Jones industrial average slid 158 points, or 0.7 percent, to 21,296. The Nasdaq composite lost 97 points, or 1.6 percent, to 6,137. The Russell 2000 index of small-company stocks gave up 13 points, or 1 percent, to 1,411. The stock market was coming off its biggest gain in two months.
THE QUOTE: “European shares were down and that’s certainly giving a little bit of pause for concern,” said Eric Wiegand, a senior portfolio manager with Private Wealth Management at U.S. Bank. “Investors, ourselves included, are anxious to get into earnings season a couple of weeks from now.”
ECONOMIC SNAPSHOT: The Commerce Department said that the nation’s gross domestic product, the broadest measure of economic health, increased at an annual rate of 1.4 percent in the first quarter. That’s better than the previous estimate of 1.2 percent and double the initial estimate of 0.7 percent. The upgrade reflects new-found strength in consumer spending and exports.
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TECH SLIDE: Technology companies continued to slide. Chipmaker Nvidia lost $5.44, or 3.6 percent, to $146.31. KLA-Tencor fell $3.35, or 3.5 percent, to $92.39. Cisco Systems was down 1.6 percent after the seller of routers, switches, software and services lowered its earnings and revenue forecasts for the next few years. The stock gave up 52 cents to $31.56.
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