U.S. stock moved off their session lows around midday on Thursday, but
were still set for their worst day this year as the lack of details on economic
policy in Donald
Trump's speech hit investors optimism and winded a
post-election rally.
The losses were broad-based. All but 3 of the 30 components were lower,
while 10 of the 11 major S&P 500 sectors declined.
In his first news conference since election, Trump on Wednesday gave no
details on tax cuts or infrastructure spending. He instead lashed out at U.S.
spy agencies and media houses over what he called a 'phony' Russia dossier.
"Some wind has been taken out of the reflation trade, at least for
the short term," said Jeff Zipper, managing director at the Private Client
Reserve, U.S. Bank in Florida.
"There is a high probability of more volatility if his agenda does
not go through or may take longer than he expects."
At one point, the Dow and the S&P were set for their biggest one-day
percentage loss since October. Despite the minor recovery, the Dow has further
retreated from the 20,000-point mark, while the Nasdaq is set to snap a
four-session streak of closing at record highs.
At 12:31 a.m. ET (1731 GMT), the Dow Jones .DJI was
down 115.9 points, or 0.58 percent, at 19,838.38 and the S&P 500 .SPX was
down 11.4 points, or 0.50 percent, at 2,263.92.
The Nasdaq Composite .IXIC was
down 37.64 points, or 0.68 percent, at 5,526.01.
The CBOE Volatility Index .VIX or Wall Street's "fear gauge",
ticked up 8.1 percent, the most since the U.S. election.
The technology .SPLRCT, financial .SPSY and industrial .SPLRCI sectors
all tumbled more than 1 percent.
The financial index was down 1.45 percent, set for its worst day since
late September, one day before a trio of big banks report results, kicking off
the fourth-quarter earnings season.
Merck (MRK.N)
was up 1 percent after multiple broker upgrades, one of the few bright spots
for the second straight session.
Microsoft (MSFT.O)
fell 1.8 percent and Apple (AAPL.O)
dropped 0.9 percent, making them the biggest drags on the S&P and the
Nasdaq.
Declining issues outnumbered advancers on the NYSE by 1,973 to 880. On
the Nasdaq, 2,043 issues fell and 706 advanced.
The S&P 500 index showed seven new 52-week highs and four new lows,
while the Nasdaq recorded 35 new highs and 19 new lows.
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