“I like to define it as healthy whiplash,” said Jason Pride, chief private wealth investment officer in Glenmede. “The market sees the change in the terrain and it is adaptable to the adjustment; the land will have higher interest rates. “
The S&P 500 fell 23.42 points to 4,326.51, its third consecutive decline. The index has gained just five days so far in January. It is within 10 points of entering the “correction,” meaning a 10% drop from its high set on Jan. 3.
The Dow fell 7.31 points to 34,160.78. The Nasdaq dropped 189.34 points to 13,352.78. Russell 2000 fell by 45.18 points to 1,931.29.
Consumer spending -dependent companies and banks are among the biggest weights in the S&P 500. Royal Caribbean fell 6.3% and JPMorgan Chase fell 1.8%.
Technology stocks have also lost ground. The sector has become the main driver for the broader market swing as investors move money in hopes of higher interest rates. Expensive tech companies and other growth stocks are considered less attractive when interest rates rise. Nvidia fell 3.6%.
Energy and communications stocks made solid gains on Thursday. Chevron rose 2% and Netflix jumped 7.5%.
Bond yields have fallen. The yield on the 10-year Treasury fell to 1.80% from 1.84% late Wednesday.
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