Wall Street drops as bargain hunting tapers off

Stocks on Wall Street extended their declines Thursday after an early rally ran out of gas. The broad-based sell-off sank the Nasdaq deeper into correction territory.

Thomson Reuters Stocks Buzz Analyst Terence Gabriel says technical signs indicate the Nasdaq could tumble further.

“The Nasdaq’s longer-term trend is, has certainly been damaged, so it does sort of flip the picture, perhaps to more of a ‘sell rallies’ market and until some of this uncertainty regarding just how aggressive the Federal Reserve is going to be this year is, is sorted out.”

The blue-chip index shed over 300 points or nine-tenth percent. The S&P 500 fell more than 1%, and the Nasdaq surrendered one-and-a-third percent.

One of the stocks that soared amid the lockdown – Peloton – plunged on Thursday, losing a quarter of its value. CNBC reported that the exercise bike maker is pausing production of its bicycles and treadmills as demand wanes.

Shares of American Airlines and United Airlines fell more than 3%. Both carriers said a recovery in passenger traffic was likely to resume in March but warned that the latest wave of the health crisis would keep their costs elevated this year.

After the bell, Netflix shares fell, wiping away most of its pandemic-fueled gains from 2020. The video streaming company dashed hopes for a rebound after forecasting weak first quarter subscriber growth.

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