Stocks closed slightly off their session lows, but major stock indexes still suffered steep losses amid concerns including a hawkish Fed and Saudi Arabia.
XThe Nasdaq led the sell-off with a 2.1% drop, the S&P 500 dived 1.4% and the Dow Jones industrial average sank 1.3% in the stock market today. Small caps took hits, too, as the Russell 2000 tumbled 1.7%. Volumes swelled on the NYSE and Nasdaq, according to preliminary data.
The Nasdaq slipped below its 200-day moving average while the S&P 500 closed right around the line and the Dow remained above.
Most Dow stocks were lower as the broad rout sent the blue-chip index down more than 300 points. Caterpillar (CAT), the biggest loser, lost 4% amid overall weakness in the Machinery-Construction/Mining group. The group fell 4.3% for the day. Caterpillar is a top-10 holding in the Industrial Select Sector SPDR Fund (XLI), which slid 1.7%.
Tech Stocks Under Pressure
Big-cap techs were under pressure again as IBM (IBM), Microsoft (MSFT), Apple (AAPL) and Intel (INTC) each gave up more than 2%. IBM dropped 2.6% to extend its 8% plunge from Wednesday, which followed a late Tuesday revenue miss. It's now 23% off its 52-week high.
Microsoft and Apple are holding up better, at 6% and 7% below their respective highs. Microsoft is trying to hold on to its 50-day moving average as it remains 8% above its 200-day line.
Apple is showing similar action but is 13% above its 200-day average. It's attempted to bounce off the 50-day a couple of times during the past week but keeps hitting resistance. Shares are still 11% extended from a 194.30 flat-base entry cleared in August. The iPhone maker announced Thursday an Oct. 30 product launch event in New York City. Analysts expect Apple to unveil its latest iPad Pro tablets and Mac computers.
Gaming software, homebuilders and oil stocks led the downside among sector decliners. The handful of sectors avoiding the downdraft included auto parts retail, medical and utilities.
In the gaming software group, Activision Blizzard (ATVI) gapped down and plunged 8% to undercut its 200-day line for the first time in nearly two months. The video game publisher announced initial sales of its "Call of Duty: Black Ops 4" game, which were in line with last year's "Call of Duty: WWII." Investors were likely expecting higher "Black Ops" sales.
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