Dow falls more than 500 points, Nasdaq falls 3% as Apple slumps

Stocks fell on Thursday, erasing the previous session’s gains, as tech stocks tumbled on the back of Apple’s decline.

The Dow Jones Industrial Average was down 603 points, or 2.03%. The S&P 500 and Nasdaq Composite fell 2.59% and 3.29%, respectively.

Apple shares fell 3.7% after Bank of America Downgraded the tech stock from buy to neutral It cut its price target citing weak consumer sentiment.

A stronger-than-expected jobless claims report didn’t help sentiment, with the Federal Reserve likely to continue aggressive rate hikes to fight inflation, which is likely to hurt the labor market.

The 10-year US Treasury yield returned to trade at around 3.79%. A day earlier, it briefly posted 4%, its biggest one-day drop since 2020.

The moves followed a broader rally for stocks on Wednesday, the bank said The UK said it would buy bonds in a bid to help stabilize its financial markets and the sagging British pound. Sterling bowed A record low against the US dollar In recent days.

It marked a stark shift from the aggressive tightening campaign by many global central banks to tackle rising inflation.

The Dow rose more than 500 points, or 1.9%, on Wednesday, while the S&P 500 rose nearly 2% after hitting A new bear market low On Tuesday. Both indices saw six-day losses.

“We suspect the calm mood in markets on Wednesday marks an end to a recent period of heightened volatility or risk-off sentiment. For a sustained rally, investors will need to see solid evidence that inflation is coming under control. Banks will become less hawkish,” UBS’s Mark Heffel wrote in a Thursday note.

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Wednesday’s rally put the major averages on pace for a losing week and the worst month since June. The Nasdaq composite led the monthly losses, down about 8.4%, while the Dow and S&P were off a slower pace of 7% and 7.5%, respectively.

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