(MENAFN- AFP) US stocks Thursday fell sharply as weak Chinese economic data and rising tensions in Ukraine offset solid US retail sales and labor-market data.The Dow Jones Industrial Average tumbled 231.19 points (1.41 percent) to 16,108.89.The broad-based S&P 500 fell 21.86 (1.17 percent) to 1,846.34, while the tech-rich Nasdaq Composite Index slumped 62.91 (1.46 percent) to 4,260.42.Stocks had opened higher following better-than-expected US reports on retail sales and unemployment claims, but veered into negative territory mid-morning with the sell-off accelerating in the afternoon.Analysts pointed to a range of factors behind the big drop, such as several disappointing bits of Chinese economic data that included an 8.6 percent growth in industrial output, the slowest pace in five years."Each time US investors worry about China, it results in lower stock prices," said Dan Greenhaus, chief global strategist of BTIG.Other factors included news that Russia had escalated military training exercises near Ukraine and congressional testimony from Federal Reserve vice chair nominee Stanley Fischer that confirmed his support of phasing out stimulus. Greenhaus said Thursday's trade should be seen in the context of a market that has not significantly gained since the start of 2014."We're basically flat for the year," Greenhaus said. "So you're talking about two and a half months of sideways action."All 30 components of the Dow finished lower. Pfizer (-2.7 percent) lost the most in the 30-stock Dow following an unfavorable court patent ruling Wednesday on its Celebrex drug. General Motors fell 2.2 percent after company data showed it knew of the ignition problem behind a major recall three years earlier than previously thought.Amazon rose 0.2 percent on news the online retailer will hike the subscription price of its "prime" service by 25 percent.A strong earnings report from home-goods retailer Williams-Sonoma lifted shares 9.8 percent. The company said it outperformed the retail sector, posting fourth-quarter sales 4.3 percent higher than a year ago and raising its quarterly dividend.Bond prices rose. The yield on the 10-year US Treasury sank to 2.65 percent from 2.73 percent, while the 30-year fell to 3.60 percent from 3.67 percent. Bond prices and yields move inversely.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.