MSCI’s gauge of stocks across the globe declined 6.64 points, or 0.81%, to 816.95
World stock indexes dropped on Thursday as a selling mood around high-priced technology stocks crept into the rest of the market, while the dollar index rose after strong U.S. economic data.
Japan’s yen dipped after hitting a six-week high, while the euro eased after ECB President Christine Lagarde held off any interest rate change but said a decision at the ECB’s next meeting in September was “wide open”.
The Dow Jones Industrial Average closed down 533.06 points, or 1.29%, at 40,665.02, halting a series of successive closing highs. The S&P 500 shed 43.68 points, or 0.78%, to 5,544.59.
All of the major S&P 500 indexes closed lower, except for energy, which was 0.3% higher.
The Nasdaq Composite shed 125.70 points, or 0.70%, to 17,871.22, giving back early gains. It had initially recovered from Wednesday’s session, its lowest since December 2022. Europe’s STOXX 600 index dropped 0.16%.
MSCI’s gauge of stocks across the globe declined 6.64 points, or 0.81%, to 816.95. The STOXX 600 index dropped 0.16%.
The technology sell-off appears to be spreading to the rest of the market, according to Gene Goldman, chief investment officer at Cetera Investment Management in California.
Goldman and others said investors had already factored in good news, including expectations the Fed would reduce interest rates in September and that a recession would likely be avoided.
Anticipation of further comments from Republican presidential candidate Donald Trump later on Thursday at the Republican National Convention could add to nervousness, he added.
He may suggest more tariffs, which is a concern for technology firms, he said.
In the foreign exchange market, the dollar index gained after strong U.S. manufacturing data and jobless data that did little to indicate a significant slowing in the labour market.
The dollar index, added 0.5% at 104.19, after staying near its lowest level in four months. The euro was 0.37% lower at $1.0896, easing from a four-month high on Wednesday.
