Nasdaq Sinks 2.6% As Shares See Bad Day

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Nasdaq Sinks 2.6% As Shares See Bad Day

Stocks fell on Friday, with Nasdaq taking a heavy toll following a payroll report showing unemployment rate was unchanged for the most part in March.

The labor market advanced, with 192,000 people getting jobs in the month as more favorable weather conditions gave some life to the job market after a harsh winter. However, the jobless rate stayed unaltered because there were more persons pursuing employment.

The Nasdaq index was hit hard, sliding 2.6 percent or around 110 points. The Dow Jones industrial average closed at 1 percent less, having lost 160 points. The S&P 500 shed about 24 points or 1.25 percent.

The so called momentum shares got severely hurt with high flyers such as Facebook, Amazon, and Tesla seeing drastic declines, according to USA Today.

The sharp drop in stocks on Friday left analysts wondering if the sell off is harmless and just an indicator of investments shifting into better-valued stocks or the sharp decline is a sign of turmoil in the US stock market at large.

Shares had ended a four-day run of growth on Thursday.

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“This is a spillover effect from the Nasdaq’s momentum names into the broader market. We’ve seen momentum names weak over the week and that seems to have picked up steam today – 1,875 on the S&P 500 is going to be a critical level,” Art Hogan of Wunderlich Securities is quoted by CNBC as saying.

Asian stocks remained steady. Benchmark Nikkei 225 of Japan plunged 8.11 points, less than 0.1 percent, to hit 15,063.77. Hang Seng of Hong Kong declined 55 points to close at 22,510.08 after losing 0.2%.

Yet, the Shanghai composite index advanced to 2,058.83 after gaining 15.3 points or 0.7%.

European stocks were higher, with UK’s FTSE 100 index jumping 0.7%. DAX index of Germany added 0.7% while CAC-40 index of France rose 0.8%.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com