GLOBAL MARKETS-Stocks fall on tech weakness, dollar gains
*U.S. initial jobless claims rise less than expected. NEW YORK, Sept 3- A gauge of global stocks turned lower on Thursday as U.S. markets opened and were weighed down by weakness in the technology sector, while the dollar continued its bounce from more than two-year lows. Signs the U.S. economy’s rebound from coronavirus-driven lockdowns could be stalling in the…
(Updates to open of U.S. markets, changes dateline; previous
* World share markets fall as tech stocks weigh
* Dollar adds to gains, euro retreats to $1.18
* U.S. initial jobless claims rise less than expected
By Chuck Mikolajczak
NEW YORK, Sept 3 (Reuters) – A gauge of global stocks turnedlower on Thursday as U.S. markets opened and were weighed downby weakness in the technology sector, while the dollar continuedits bounce from more than two-year lows.
The S&P technology sector, up more than 35% on theyear as the best-performing of the 11 major sectors, fell 5.52%as investors look for cheaper stocks in other areas.
Signs the U.S. economy’s rebound from coronavirus-drivenlockdowns could be stalling in the absence of another round offiscal stimulus also weighed.
While weekly initial jobless claims fell more thananticipated, the remained extremely high. In addition, themethodology used in the weekly report to address seasonalfluctuations was changed, which analysts said led to fewerclaims than over the past two months.
“We’re going to struggle to put people back to work; it’sgoing to be another three to four years and then we have tosustain it,” said Greg Hahn, chief investment officer atWinthrop Capital Management in Indiana.
Investors will closely watch Friday’s August employmentreport for further signs of labor market stagnation.
Other data showed growth in the services sector slowed lastmonth, as the boost from fiscal stimulus and business reopeningsfaded, although it remained above the level signifying growth.
The Dow Jones Industrial Average fell 716.44 points,or 2.46%, to 28,384.06, the S&P 500 lost 116.68 points,or 3.26%, to 3,464.16 and the Nasdaq Composite dropped580.14 points, or 4.81%, to 11,476.31.
Talks on a new fiscal stimulus package remained at astalemate, as U.S. House Speaker Nancy Pelosi said on Tuesdaythat “serious differences” remain between Democrats and theWhite House.
European shares relinquished early gains and turned negativeafter rising more than 1.2% as the weakness in tech namesspread, pulling them down 3.55%.
The pan-European STOXX 600 index lost 1.04% andMSCI’s gauge of stocks across the globe shed2.45%.
The dollar continued to bounce after hitting its lowestlevel since late April 2018 on Tuesday, while the euro continuedits recent slide to dip as low as $1.1789 after climbing as highas $1.20 earlier in the week after the European Central bankexpressed concerns about its rapid rise.
The dollar index rose 0.338%, with the eurodown 0.27% to $1.1821.
Benchmark 10-year U.S. Treasury notes last rose10/32 in price to yield 0.6185%, from 0.651% late on Wednesday.
Oil prices weakened, with both Brent and WTI crude hittingone-month lows on worries about weaker U.S. gasoline demand anda slowdown in the economic recovery.
U.S. crude recently fell 2.36% to $40.53 per barreland Brent was at $43.24, down 2.68% on the day.
(Additional reporting by Medha Singh in Bengaluru; Editing byDan Grebler)
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