Tech shares pull back ahead of US inflation data / Photo: © AFP/File
Tech shares pull back ahead of US inflation data
Wall Street stocks tumbled Thursday following another pullback in tech shares as markets look ahead to a key inflation reading.
Apple, Amazon and Facebook parent Meta were among the large tech companies losing more than two percent in a session that began benignly but ended deep in the red, with the Nasdaq off more than two percent.
"We continue to have selling in tech," said Art Hogan of B. Riley Wealth Management. "There are concerns over what AI might disrupt."
Markets have digested mixed US economic data this week, with poor retail sales and existing-home sales offsetting strong US employment data. Investors looking forward to Friday's release of consumer price inflation (CPI) data for January for further clues on potential rate cuts.
"Caught between payrolls and CPI, US markets have found themselves unable to maintain momentum," said Chris Beauchamp, chief market analyst at IG trading platform, referring to the jobs report and inflation data.
In Europe, Paris ended with a gain after striking a fresh record high. London's blue-chip FTSE 100 index did the same but ended the day lower, as data showed the British economy managing only tepid growth in the final quarter of last year.
"The strength seen in Europe...comes from improved earnings data from some of the big hitters," said Joshua Mahony, chief market analyst at Scope Markets.
Shares in German industrial giant Siemens jumped 5.8 percent as it raised its outlook for the year after a strong first quarter boosted by spending on artificial intelligence.
In Paris, RayBan maker EssilorLuxottica shares rose 3.8 percent as its fourth-quarter earnings beat market expectations. Hermes climbed 2.8 percent after reporting 2025 sales growth despite the impact of US tariffs and a weaker dollar.
But French pharma giant Sanofi sank 4.2 percent after the surprise ouster of its chief executive Paul Hudson, suggesting growing concerns about the company's pipeline for new products. He will be replaced by Belen Garijo, currently chief of Germany's Merck KGaA.
Asian markets were subdued after the lackluster US close on Wednesday, where tech firms came in for further selling amid concerns of the scale of massive AI investments and their eventual impact on various industries.
- Key figures at around 2130 GMT -
New York - Dow: DOWN 1.3 percent at 49,451.98 (close)
New York - S&P 500: DOWN 1.6 percent at 6,832.76 (close)
New York - Nasdaq: DOWN 2.0 percent at 22,597.15 (close)
London - FTSE 100: DOWN 0.7 at 10,402.44 (close)
Paris - CAC 40: UP 0.3 percent at 8,340.56 (close)
Frankfurt - DAX: FLAT at 24,852.69 (close)
Tokyo - Nikkei 225: FLAT at 57,639.84 (close)
Hong Kong - Hang Seng Index: DOWN 0.9 percent at 27,032.54 (close)
Shanghai - Composite: UP 0.1 percent at 4,134.02 (close)
Euro/dollar: UP at $1.1876 from $1.1872 on Wednesday
Pound/dollar: DOWN at $1.3620 from $1.3628
Dollar/yen: UP at 152.75 yen from 153.26 yen
Euro/pound: UP at 87.16 pence from 87.11 pence
Brent North Sea Crude: DOWN 2.7 percent at $67.52 per barrel
West Texas Intermediate: DOWN 2.8 percent at $62.84 per barrel
burs-jmb/sla
(V.Korablyov--DTZ)
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