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Indexes down: Dow 0.56%, S&P 500 0.55%, Nasdaq 0.91%
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Datadog ( DDOG ) gains after annual profit, revenue forecast raise
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DoorDash ( DASH ) slides after quarterly revenue miss
(Updates after markets open)
By Twesha Dikshit and Purvi Agarwal
Nov 6 (Reuters) - Wall Street's main indexes fell on
Thursday, as technology stocks came under fresh selling
pressure, while U.S. tariff concerns and uncertainty around the
health of the economy kept investors on edge.
Most tech stocks declined as worries over stretched
valuations lingered, after a brief respite on Wednesday.
Warnings of a market pullback from Wall Street executives on
Tuesday had prompted a sharp sell-off in markets driven by
AI-linked stocks.
Apple ( AAPL ) fell 0.3%, Microsoft ( MSFT ) was down 1.6%
and Nvidia ( NVDA ) lost 1.2%. The information technology sector
fell 1.2%.
DoorDash ( DASH ) slumped 16% to the bottom of the S&P 500
after the delivery firm reported third-quarter profit below Wall
Street expectations on rising expenses. It weighed on the
consumer discretionary sector, which fell 1.3%.
At 10:10 a.m. ET, the Dow Jones Industrial Average
fell 266.67 points, or 0.56%, to 47,044.33, the S&P 500
lost 37.16 points, or 0.55%, to 6,759.13 and the Nasdaq
Composite lost 214.51 points, or 0.91%, to 23,285.29.
Meanwhile, the longest U.S. government shutdown in history
has led to investors and the Federal Reserve flying blind ahead
of the next rate decision and reliant on mixed private sector
indicators.
Global outplacement company Challenger, Gray & Christmas said
on Thursday layoffs announced by U.S. employers surged in
October, marking the highest level for the month in 22 years,
while data from Revelio Labs showed the economy shed jobs last
month.
The data was in contrast to Wednesday's strong ADP report,
spurring uncertainty over the health of the U.S. labor market.
"We have uncertainty from the Fed decision next month, on
where the tariffs are going, with the government shutdown... the
markets are a little bit cautious right now," said Dennis Dick,
chief strategist at Stock Trader Network.
"It's been an excellent couple of months for the market and
a little bit of a corrective phase here is warranted."
The U.S. formalized changes to reciprocal tariff rates with
China in a government posting, a day after the Supreme Court
raised doubts over the legality of the duties.
Meanwhile, investors assessed a bag of mixed corporate
earnings. Datadog ( DDOG ) topped the S&P 500 with a 19% surge
after the cloud security firm raised its annual profit and
revenue forecasts.
Moderna ( MRNA ) gained 3.5% after the vaccine maker posted
a smaller-than-expected third-quarter loss.
Cosmetics-maker Elf Beauty ( ELF ) forecast annual sales and
profit below expectations, sending its shares down 32%.
Qualcomm ( QCOM ) dipped 1.7% after the chip designer warned
of a possible loss of business next year from its key customer,
Samsung, but forecast quarterly sales and profit above market
expectations.
Chicago Fed President Austan Goolsbee said the lack of
official data "accentuates" his caution about cutting interest
rates further, which also weighed on market sentiment.
In other moves, DraftKings ( DKNG ) was up 2.2% after a
Bloomberg News report that Disney ( DIS ) signed the company as
ESPN's ( DIS ) new sports-betting partner.
Declining issues outnumbered advancers by a 1.21-to-1 ratio
on the NYSE and by a 1.76-to-1 ratio on the Nasdaq.
The S&P 500 posted 15 new 52-week highs and 16 new lows
while the Nasdaq Composite recorded 59 new highs and 112 new
lows.