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Feb. 25, 2021, 4:36 p.m. EST

Dow tumbles 560 points for worst percentage fall in 3 weeks as bond yields surge

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By Mark DeCambre and Sunny Oh

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“You could have a perfect storm of inflation, but the fear is the Fed would look at that and decide it’s just cyclical,” said Clemons.

On Thursday, Kansas City Fed President Esther George said that inflation could quickly rise once more Americans are vaccinated and the U.S. central bank should monitor price signals closely. St. Louis Fed President James Bullard said

Meanwhile, investors were digesting the latest weekly reading on those seeking unemployment benefits amid the COVID-19 pandemic, with initial state jobless claims dropping 111,000 to 730,000 in the week of Feb. 20. Economists had expected first-time jobless claims to come in at 845,000. The fall was larger than expected, but claims data has been erratic and unreliable lately, due to processing snafus, bad weather and other problems.

On the plus side, continuing state jobless claims declined 101,000 to 4.42 million. However, the number of people out of work from the pandemic remains very elevated.

The Food and Drug Administration on Wednesday said that Johnson & Johnson’s /zigman2/quotes/201724570/composite JNJ +0.15% single-dose COVID-19 vaccine candidate has no unexpected safety concerns , in a step that moves the experimental vaccine one step closer to emergency authorization.

Read: A new wave of fearless individual investors could be ready to pour $170 billion into stocks, says Deutsche Bank

In other economic data, sales of durable goods rose 1.4% in January, with core capital goods orders advancing 0.5% last month. Separately, an updated reading of U.S. fourth-quarter gross domestic product was raised slightly to 4.1% from 4% from the first estimate.

Meanwhile, the index of pending home sales fell 2.8% in January, after four consecutive months of declines, the National Association of Realtors. The index captures real-estate transactions where a contract was signed, but the sale has not yet closed, making it an indicator of where existing-home sales will go in the months ahead.

Investors were also focused in a renewed surge by shares of GameStop Corp. GME shares, which rose 19% Thursday, building on a gain of more than 100% in the prvious session. The stock had spiked in January amid concerted buying efforts by participants in Reddit’s WallStreetBets forum, sparking a short covering rally that briefly sent ripples through equity markets that attracted scrutiny from regulators and lawmakers.

Read: GameStop Round 2? How an options-buying frenzy is providing another jolt to meme stocks

Which companies were in focus?

  • Shares of movie-theater chain AMC Entertainment Holdings Inc. /zigman2/quotes/200235402/composite AMC +1.64% , another popular stock on WallStreetBets, gained 8.9% in volatile trading.

  • Shares of NVIDIA Corp. /zigman2/quotes/200467500/composite NVDA +4.23% fell 8.2% after the company late Wednesday reported that its quarterly revenue blew past last quarter’s record-setting sales , as high holiday demand for chips used in video games met with supply shortages.

  • Teladoc Health Inc. /zigman2/quotes/207420252/composite TDOC +5.25% shares dropped 13.8% after the virtual healthcare company reported fiscal fourth-quarter results late Wednesday.

  • Verizon Communications Inc. /zigman2/quotes/204980236/composite VZ -0.20% was overwhelmingly the largest bidder in a crucial 5G auction, spending $45.5 billion, or more than half the auction’s total revenues of $81.2 billion, the Federal Communications Commission disclosed Wednesday afternoon. AT&T Inc. /zigman2/quotes/203165245/composite T +0.09% spent 23.4 billion in the C-band auction, while T-Mobile US. Inc. /zigman2/quotes/204659678/composite TMUS +2.46% spent $9.3 billion. Shares of Verizon ended 1.1% lower, those for T-Mobile 2.5% higher and AT&T shares finished 1.3% lower.

  • Shares of Best Buy Co. Inc. /zigman2/quotes/205918291/composite BBY +1.17% closed down 9.3% after earnings and revenues fell short of forecasts.

  • Moderna Inc. /zigman2/quotes/205619834/composite MRNA +7.68% shares rose 2.5% after reporting fourth-quarter results.

How did other markets perform?

  • The ICE U.S. Dollar Index,  DXY a measure of the currency against a basket of six major rivals, was flat.

  • Oil futures jumped to a 13-month high, with the U.S. benchmark  CL.1  gaining 31 cents, or 0.5%, to settle at $63.53 per barrel. April gold futures lost $22.50, or nearly 1.3%, to settle at $1,775.40 an ounce as yields resumed their upward march.

  • In overseas stock trading, the pan-European Stoxx 600  SXXP closed down 0.4% and London’s FTSE 100  UKX fell 0.1%. In Asian trade, the Shanghai Composite  SHCOMP  closed 0.6% higher, China’s CSI 300 /zigman2/quotes/210598128/delayed XX:000300 +2.36% rose 0.6%, while Hong Kong’s Hang Seng Index  HSI rose 1.2%.

/zigman2/quotes/201724570/composite
US : U.S.: NYSE
$ 170.22
+0.26 +0.15%
Volume: 5.80M
May 14, 2021 4:00p
P/E Ratio
30.07
Dividend Yield
2.49%
Market Cap
$448.26 billion
Rev. per Employee
$613,918
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/zigman2/quotes/200235402/composite
US : U.S.: NYSE
$ 12.98
+0.21 +1.64%
Volume: 207.59M
May 14, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$5.84 billion
Rev. per Employee
$43,642
loading...
/zigman2/quotes/200467500/composite
US : U.S.: Nasdaq
$ 569.72
+23.11 +4.23%
Volume: 6.47M
May 14, 2021 4:00p
P/E Ratio
82.60
Dividend Yield
0.11%
Market Cap
$354.58 billion
Rev. per Employee
$878,788
loading...
/zigman2/quotes/207420252/composite
US : U.S.: NYSE
$ 139.68
+6.97 +5.25%
Volume: 3.39M
May 14, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$21.58 billion
Rev. per Employee
$248,628
loading...
/zigman2/quotes/204980236/composite
US : U.S.: NYSE
$ 58.69
-0.12 -0.20%
Volume: 13.77M
May 14, 2021 4:00p
P/E Ratio
12.87
Dividend Yield
4.28%
Market Cap
$242.98 billion
Rev. per Employee
$970,439
loading...
/zigman2/quotes/203165245/composite
US : U.S.: NYSE
$ 32.24
+0.03 +0.09%
Volume: 21.18M
May 14, 2021 4:04p
P/E Ratio
N/A
Dividend Yield
6.45%
Market Cap
$230.19 billion
Rev. per Employee
$746,783
loading...
/zigman2/quotes/204659678/composite
US : U.S.: Nasdaq
$ 141.52
+3.40 +2.46%
Volume: 5.33M
May 14, 2021 4:00p
P/E Ratio
58.11
Dividend Yield
N/A
Market Cap
$176.46 billion
Rev. per Employee
$911,960
loading...
/zigman2/quotes/205918291/composite
US : U.S.: NYSE
$ 120.39
+1.39 +1.17%
Volume: 1.69M
May 14, 2021 4:00p
P/E Ratio
17.60
Dividend Yield
2.33%
Market Cap
$30.15 billion
Rev. per Employee
$463,353
loading...
/zigman2/quotes/205619834/composite
US : U.S.: Nasdaq
$ 161.38
+11.51 +7.68%
Volume: 6.51M
May 14, 2021 4:00p
P/E Ratio
128.69
Dividend Yield
N/A
Market Cap
$64.80 billion
Rev. per Employee
$617,996
loading...
/zigman2/quotes/210598128/delayed
XX : China Securities Index
5,110.59
+117.62 +2.36%
Volume: 15.94B
May 14, 2021 3:01p
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