NEW YORK: The Dow briefly sank into negative territory in midday trading on Friday as a US stocks rally lost steam, a sign of continued investor unease following a two-day rout.
Near 1700 GMT, the Dow Jones Industrial Average was at 25,136.79, up 0.3 percent, but about 330 points below its session peak. The index had already lost nearly 1,400 points in the prior two days.
The tech-rich Nasdaq Composite Index was still solidly positive at 7,421.58, up 1.3 percent, while the broad-based S&P 500 added 0.6 percent at 2,744.57.
This week’s selling was spurred by worries over higher interest rates and the effect of trade wars, as well as diminishing investor sentiment.
“In healthy markets, the market tends to bounce for a few days or week. In unhealthy markets it only bounces for a few hours,” said Adam Sarhan of 50 Park Investments. “Sellers are taking control and the market is very weak.”
Big losers in the Dow included Boeing and United Technologies, which both fell about one percent, and JPMorgan Chase, which slumped 2.0 percent despite reporting better-than-expected quarterly earnings.
Technology companies with solid gains included Apple, Amazon and Microsoft, all up at least two percent. —AFP