The Nasdaq composite closed lower for a fourth straight day on Thursday, notching its longest losing streak since November 2016. The Dow Jones industrial average and S&P 500 snapped a two-day slide, but closed well off the highs as worries about rising rates lingered.
tech-heavy Nasdaq ended the session 0.1 percent lower at 7,210.09. At
its session high, it rose as much as 0.9 percent. But declines in
Netflix, Google-parent Alphabet and the iShares Nasdaq Biotechnology
exchange-traded fund (IBB) pressured the index lower.
closed 164.70 points higher at 24,962.48, with United Technologies as
its best-performing stock. The 30-stock index rose as much as 358.94
points earlier in the session. Meanwhile, the S&P 500 ended
Thursday's session 0.1 percent higher at 2,703.96 after a rollover in
the final hour of trading. The broad index gained as much as 1.1
"On balance, equities are in a 'muddle-along' zone," said
Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.
"The macro economic environment still looks favorable," but "we need
another round of economic releases to get a better sense of how much
inflation is in the marketplace."
The major averages gave up sharp
gains on Wednesday after a summary from the Federal Reserve's January
meeting sent the benchmark 10-year U.S. note yield to its highest level
in four years. The Dow closed 166 points lower, having risen as much as
303 points. On Thursday, the 10-year yield traded off its four-year high
at 2.921 percent.
"The minutes convey a clear sense that
inflation is more on their minds than the FOMC statement indicated,"
Steve Blitz, chief U.S. economist at TS Lombard, said in a note. "The
minutes gave readers conviction that only a sea change will stay the Fed
from four 25bp rate rises in 2018. One might think this trajectory puts
the Fed behind economic activity, but market odds-setters still very
much lag the Fed, pricing in only about a 25% chance of four hikes this
"Investors got more news out of the Fed on Thursday. Atlanta
Fed President Raphael Bostic said things continue to "look up" for the
U.S. economy. St. Louis Fed President James Bullard, meanwhile, told
CNBC's "Squawk Box" that too many rate hikes could slow down the economy
too much. New York Fed President William Dudley delivered prepared
remarks, but did not address monetary policy.
Earlier this month,
stocks suffered their first 10 percent pullback since early 2016. The
Dow, S&P 500 and Nasdaq all closed in correction territory on Feb.
8. The move lower was sparked, in part, by fears of rising inflation and
higher interest rates.
"If interest rates move higher slowly, ...
then I think the market will be calm," said Tim Courtney, chief
investment officer at Exencial Wealth Advisors. "But if they go up
quickly, we could see another wild ride" in the market.
major averages were quick to recover some of those losses. As of
Wednesday's close, the Nasdaq had regained about 62 percent of the
losses suffered, while the S&P 500 and Dow had jumped about 40
percent and 35 percent.
But Randy Frederick, vice president of
trading and derivatives at Charles Schwab, said he thinks the market may
have recovered a little too fast from its lows. "When you recover that
fast, that usually opens the door for another downturn," he said.
corporate news, Chesapeake Energy shares jumped 21.7 percent after the
company reported better-than-expected quarterly earnings. The stock was
also the best performer in the S&P 500.Meanwhile, Roku's stock shed
17.7 percent after the streaming company issued weaker-than-expected
revenue guidance for the current quarter.
shares rose 3.3 percent after CEO Greg Hayes said the company is
thinking of splitting up key parts of its business.