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U.S. stocks tumble on tech jitters, economic woes

U.S. stocks tumble on tech jitters, economic woes

U.S. stocks fell hard Thursday as the tech sector was hammered by a weak forecast from Qualcomm and economic jitters increased after cautious comments from Standard & Poor's on British banks.
The market also gave a lukewarm response to President Barack Obama's economic comments in his State of the Union address, where he called for more efforts to create jobs and also ordered caps on spending.
The Dow Jones Industrial Average slumped 115.70 points (1.13 percent) to 10,120.46. The Nasdaq composite sank 42.41 points (1.91 percent) to 2,179.00 while the Standard & Poor's 500 index shed 12.97 points (1.18 percent) to 1,084.53.
"The markets appeared rattled by a statement by S&P that UK banks are no longer among the most 'low risk' banking systems," said Wells Fargo Advisors senior equity market strategist Scott Marcouiller.
"We no longer classify the United Kingdom among the most stable and low-risk banking systems globally," S&P said in a report.
A profit warning by Qualcomm pulled the technology group lower.
"Tech's weight in the broader market and degree of weakness weighed heavily on the other major sectors, such that they all logged losses," analysts at Briefing.com said in a client note.
Market participants gave a mixed response to Obama's State of the Union, where he focused on restoring sustainable growth.
Brian Bethune, economist at IHS Global Insight, said Obama "has swiftly reordered priorities to focus on the economy and fiscal discipline."
"This was an important and skillful move by the president to regain the support of the electorate," he added. "Restoring buoyant economic growth is a necessary pre-condition for engaging the public in some of the deeper, more vexing issues."


Updated : 2021-05-07 19:25 GMT+08:00