US STOCKS-Wall St tumbles as tech rally loses steam, economic data weighs

By Medha Singh and Devik Jain. Separately, a survey showed U.S. services industry growth slowed in August, likely as the boost from the reopening of businesses and fiscal stimulus faded. “We’re going to struggle to put people back to work, it’s going to be another three to four years and then we have to sustain it,” said Greg Hahn, chief investment officer at Winthrop…

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* Weekly jobless claims slip below 1 mln

* Tesla drops for the third straight day

* Apple set to erase most of this week’s gains

* Indexes down: Dow 0.43%, S&P 1.09%, Nasdaq 2.29%(Updates to market open)

By Medha Singh and Devik Jain

Sept 3 (Reuters) – Wall Street’s main indexes fell onThursday as technology-focused stocks lost strength, whileelevated jobless claims and a slowdown in services sector fueledfears of a slow and prolonged economic recovery.

The number of Americans filing new claims for unemploymentbenefits fell more than expected last week, but remainedextraordinarily high. The government’s closely watched monthlypayrolls report is set for Friday.

Separately, a survey showed U.S. services industry growthslowed in August, likely as the boost from the reopening ofbusinesses and fiscal stimulus faded.”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.

Unprecedented fiscal and monetary support as well asincreasing bets on stay-at-home tech stocks have been poweringthe U.S. stocks markets in the recent weeks.

While the S&P 500 and Nasdaq have notched new highs, theblue-chip Dow is still about 2% short of its pre-crisis high hitin February.

Apple Inc, Netflix, Microsoft Corpand Amazon.com Inc, that have boosted thebroader indexes from their pandemic-led crash, slipped between1.2% and 3.7%.

The technology sector dropped 2.9%, whilecommunication services and consumer discretionarydeclined about 1% each.

Tesla Inc tumbled 6.1%, falling for the thirdstraight session.

“There’s going to be a rotation at some point in time. Thereis this notion that we are closer to a vaccine, and everybodywill get protected and we’ll get back to normal by the end ofthe year,” Hahn said.

Financial and energy sectors, the two worstperforming S&P sectors this year, were in a bright spot, jumping0.8% and 1.2%, respectively.

At 10:17 a.m. ET, the Dow Jones Industrial Averagewas down 125.34 points, or 0.43%, at 28,975.16, the S&P 500was down 39.17 points, or 1.09%, at 3,541.67. The NasdaqComposite was down 276.01 points, or 2.29%, at11,780.44.

PVH Corp rose 6% after Calvin Klein owner posted asurprise quarterly profit, boosted by strong online demand forcomfortable and casual clothing during the coronavirus-led shiftto work from home.

Declining issues outnumbered advancers for a 1.18-to-1 ratioon the NYSE and for a 1.69-to-1 ratio on the Nasdaq.

The S&P index recorded 18 new 52-week highs and no new low,while the Nasdaq recorded 22 new highs and 19 new lows.(Reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur)

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