Wall Street slips despite better than expected US jobs data

US stocks opened lower on Thursday as Wall Street reckoned with yesterday’s technology-led selloff, despite new data showing an improved US employment market.

The tech-heavy Nasdaq slid 2.4 per cent this afternoon, with carpet company Dixie Group pulling the index down with a 48 per cent drop.

Tesla shares extended yesterday’s loss of more than four per cent, shedding a further 6.5 per cent this afternoon. Last week, the electric-car leader broke down through its key 10-week moving average line, a critical support level.

The Dow Jones erased early gains, dropping one per cent this afternoon. Among its top stocks, Apple shares fell 1.7 per cent, while Microsoft shed 0.4 per cent.

It comes after US jobless claims increased by 9,000 from the prior week to 745,000 for the week to 20 February 20. This came in better than the 750,000 expected, according to Bloomberg consensus data.

The drop came after another fall on Wall Street last night, with the S&P 500, Dow Jones, and Nasdaq all sharply down overnight.

Once again, rising bond yields, which inspired a hefty sell-off last week, were to blame for the tumble.

Commodities firms were among the biggest losers this morning, with Rio Tinto leading the way with a drop of 8.1 per cent.

Fellow miners BHP, Anglo American, Glencore, Antofagasta and Fresnillo were all also down, marking a reverse of strong recent gains due to rising commodity prices.

Meanwhile in the UK, the FTSE 100 gave up yesterday’s gains as a global bond sell-off sent markets lower this afternoon.

After falling as much 1.3 per cent, the blue-chip index ended down 0.4 per cent, with mining stocks, including Rio Tinto, Anglo American, Glencore and BHP among the biggest weights.

The FTSE 250 of mid cap firms fared slightly worse, closing down 0.7 per cent.

Chris Beauchamp, chief market analyst at online trading group IG, suggested the fall in FTSE could have been bigger.

“A mere 25 point fall for the index hides the carnage in names such as Rio Tinto, BHP and Antofagasta, as the sector falls some five per cent from the highs seen yesterday,” he said in a note.

Manufacturing firm Melrose Industries led the risers, after it said it had begun a sale process for its Nortek air-conditioning division.

And there was another boost for the FTSE as food delivery app Deliveroo confirmed that its £7bn listing would take place in London.

Homebuilder Vistry Group rose 3.5 per cent, after an upbeat forecast and resuming its dividend.

Admiral fell 2.7 per cent after the motor insurer said an expected a rise in claims when lockdowns ease would increase its loss ratio this year, with the warning eclipsing a 20 per cent jump in 2020 earnings.