Stocks opened lower on Thursday, chipping away at gains made the previous day when the Dow Jones industrial average surged more than 1,000 points. The Nasdaq dipped in and out of bear territory in early trading.
The Dow lost 280 points, or 1.22 percent, to 25,598 in early Thursday trading. The Standard & Poor’s 500 declined 27 points, or 1.11 percent, to 2,440.
The tech-heavy Nasdaq lost 69 points, or 1.05 percent, to 6,485, just putting it in a bear market, or at least 20 percent from its most recent closing high of 8,109.69 on Aug. 29.
The Russell 2000 – an index of small-company stocks that remains in a bear market – slipped 16 points, or 1.18 percent, to 1,314 in early trading.
“It’s hard to perceive that the markets would go up after yesterday,” said Ron Weiner, managing partner and director of RDM Finacial Group at HighTower. “There are still enough concerns out there, so I wouldn’t be surprised – and it could be healthy – if we gave back 1 percent to 2 percent max.”
On Wednesday, all four of the indexes jumped nearly 5 percent or more, boosted by a rally in energy stocks and by reports of strong retail sales during the holidays.
Earlier worries that President Trump could remove the Federal Reserve chairman, Jerome Powell, also eased after a White House adviser said the chairman was “100 percent” safe.
That stock surge followed a Christmas Eve Day rout when investors worried about cluster of political problems, from Powell to the partial government shutdown and the Treasury secretary’s bungled attempts to reassure markets.
“Basically we see the U.S. economy as not heading into a recession,” Weiner said. “The rest is difficult but it’s just noise.”
This article provided by NewsEdge.