Stocks opened sharply lower Thursday, with the Dow Jones industrials tumbling 300 points in the first few moments of the stock market retreated after Wednesday's powerful rally.
Apple (AAPL) and the four FANG stock tech leaders all opened down more than 1%. Tesla (TSLA) fell more than 3%. Xilinx (XLNX) and Advanced Micro Devices (AMD) leading the declines on the Philadelphia Semiconductor Index.
The Dow Jones industrial average fur hardest , down 1.4%. The S & P 500 slipped 1.3% and the Nasdaq Composite slumped 1.2% in early trade.
Two thirds of the 30 Dow Jones industrials lineup dropped more than 1% in opening trade. United Technologies (UTX) posted the deepest early loss.
Some possible early winners started emerge shortly after the open. China's JD.comJD popped nearly 3% after announcing an image restructuring, following sexual allegations lodged against the Chief Executive Liu Qiangdong in the U.S. Mr. Liu was cleared of the charges. JD.com shares remain deep in a 10-month correction.
Gold Miner Kirkland Lake (KL) continued higher, up 1.5% at the starting bell. The defensive stock is extended after a four-month cup base. 11.
Will Dow Jones Snap Slide?
Trading volume is traditionally light in the week between Christmas and New Year's Day. That can leave markets susceptible to volatility – and the stock market which is already uneasy heading into the holiday season. The near-5% jump by the Dow Jones industrial average on Wednesday left the index up 1.9% for the week, down 10.4% for December and a bit more than 15% off its October high. The Nasdaq heads into Thursday's session up 3.5% so far this week, 10.6% for December and 19.4% below its August high.
For the week through Wednesday, the S & P 500 was up 2.1%, but down 10.6% in December and off 16% from its peak. All three indexes are struggling to snap three-week losing streaks.
Wednesday's surge lifted the Nasdaq and S & P 500 above the 20% decline that defines a bear market. The Nasdaq fell back below the 20% mark early Thursday. Single-day rallies under bear market conditions are not to be trusted. The nine biggest single-day gains by stock market indexes have occurred during bear markets.
Retail Sales, Unemployment Claims, 2019 Hiring, Building Permits
A number of factors We are in the process of signing up for the stock market's recent volatility: the ongoing government shutdown and standoff at Congress and staffing shake-ups at the White House. There is also uncertainty regarding the autonomy of the Federal Reserve and the status of trade negotiations between the U.S. and China. Further afield, there are fears of slowing economic growth in China, and a still unresolved trade charter as Britain near its deadline to exit the European Union.
But Wednesday's rally ignited after data showed. holiday season retail sales made their most significant jump in six years. It was just the most recent in a long list of positive economic data points showing the U.S.
Despite the shutdown of federal offices, the Labor Department reported. 22. Economists had projected 217,000 new applications.
The 2019 Hiring Outlook from Challenger, Gray and Christmas shows 55% of companies planning to expand their workforce in the coming year , That's up from 46%. "
Meanwhile, economists projected a slowdown in the number of building permits issued to an indicator of pending homebuilding projects. Oil prices: The Iran Factor
Oil prices will be in tight focus during January, as the 90-day waivers issued by the US China, India and Japan continue buying Iranian oil near their early February expiration. Iran was exported from oil under sanctions imposed in November. If oil is used, the metrics of global oil supply could change rapidly.
Commodities traded generally lower Thursday. Oil prices dipped, with West Texas Intermediate trading down 1.3% to below $ 46 a barrel. Brent crude dropped 1.5%, falling below $ 54. WTI surged nearly 9% on Wednesday, but remained almost 40% below its October high.
Stock Market: Japan Rebounds; European Markets Tumble
Asia stock markets were wildly mixed. In Japan, Tokyo's Nikkei 225 rebounded 3.9% – enough to haul the index above the 20% threshold that defines a bear market. The benchmark is down 15% so far in 2018.
In China, the Shanghai Composite dropped 0.6%, while Hong Kong's Hang Seng Index took a 0.7% loss.
Stocks rallied early across Europe as trading resumed after the holiday , But early gains reversed in afternoon trade. Frankfurt's DAX dived 2%. The FTSE 100 in London fell 1.2%. The CAC-40 in Paris held a 0.3% loss.
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