Good news for the economy on Main Street turned out to be too good for much of Wall Street. An unexpectedly strong retail sales report prompted a sell-off in tech stocks, helping drag down the Dow and S&P 500 Thursday.
Retail sales grew despite Hurricane Ida and the Delta variant, and that helped drive up stocks of retailers like The Gap and Tapestry. But it also triggered a rise in bond yields, which led investors to unload rate-sensitive, market leading tech titans like Apple and Alphabet.
Terence Gabriel is Stocks Buzz Analyst at Thomson Reuters.
“Stronger-than-expected economic data gets the market worrying again that the Fed is going to taper aggressively, so it's a difficult moment for the market to be in.”
The Dow and S&P 500 declined nearly two-tenths of a percent. But a rally by Amazon helped lift the Nasdaq a tenth of a percent.
U.S.-based casino operators with operations in Macau extended their steep slide. J.P. Morgan downgraded Las Vegas Sands, Wynn Resorts and Melco Resorts to “neutral” from “overweight” after Macau launched a regulatory overhaul.
Shares of Ford Motor gained one-and-a-third percent. The automaker said it’ll boost production of its electric pickup truck, the F-150 Lightning due to strong demand. Sales start next spring.