Wall Street ends lower as tech shares tumble amid selloff

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The tech-heavy Nasdaq closed down 5%, the Dow Jones fell nearly 3%, and the broad-based S&P 500 lost 3.5%. Their dramatic rally in recent weeks has pushed the stock market to new highs, but raised concerns of a unsafe unwind that could drag the market down with them.

U.S. -listed Chinese companies traded mostly lower, with six of the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on a downbeat note.

ECONOMIC NEWS: The Labor Department released a report showing non-farm payroll employment surged up by 1.371 million jobs in August after spiking by a downwardly revised 1.734 million jobs in July and soaring by 4.781 million jobs in June.

Carmaker Tesla, whose shares have soared this year, tumbled 9% on Thursday after falling sharply in the previous two sessions.

The S&P 500 fell 28.10 points, or 0.8%, to 3,426.96.

The S&P 500 and Nasdaq suffered their worst day in almost three months on Thursday as investors booked gains.

"The market is continuously changing, and we need to reflect that in our indices", Silverblatt said. And he indicated that USA monetary policy would be eased further and interest rates kept at ultra-low levels for years to help the economy recover its pre-pandemic strength. The technology-heavy Nasdaq dropped 598.34 points to 11,458.10.

Wall Street ends lower as tech shares tumble amid selloff
Wall Street ends lower as tech shares tumble amid selloff

While data Thursday showed applications for jobless claims fell last week, USA investors may need evidence of a fuller economic recovery after a 60% run-up in the S&P 500 since its March lows.

The Nikkei 225 shed 255.04 points to 23,210.49 while the Hang Seng in Hong Kong lost 1.9% to 24,528.82.

Apple slid 1.8%, Amazon dropped 3.6% and Zoom fell 5.9%. Since this correction affected the well-being of many leaders who are large shareholders of the companies they lead, the four richest representatives of the sector became poorer by $ 25 billion at once. The Nasdaq was down 2.7% for the week, its worst performance since March.

The bout of volatility is unlikely to be the start of a downtrend, in part because institutional investors still have further room to boost their exposure to stocks, said Sophie Huynh, cross-asset strategist at Société Générale.

There is still plenty of money sloshing through financial systems with the Federal Reserve and many other central banks unleashing massive amounts of cash through bond purchases, while keeping interest rates ultra low.

Tesla stock fell more than 6% in after-hours trading following the announcement.

The gains have been based on "very optimistic assumptions" about the virus's impact on the economy, as well as on prospects for Congress and the White House coming up with another economic relief package. Investors have been betting those companies would continue posting huge profits as people spend even more time online with their devices.

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