Technology shares were back in sell-off mode while banking shares surged early Thursday amid unease over a potential shift by major central banks towards tighter monetary policy. The Nasdaq was solidly down with Apple, Microsoft and Facebook all losing one percent or more, continuing a run of volatility as sentiment fluctuates about prospects for the high-flying sector.
Analysts said comments this week by the heads of the Bank of England and the European Central Bank signaling a potential shift away from easy money policies as a headwind for equities. About 20 minutes into trading, the Dow Jones Industrial Average dipped less than 0.1 percent to 21,446.58.
The broad-based S&P 500 lost 0.2 percent to 2,434.99, while the tech-rich Nasdaq Composite Index tumbled 0.8 percent to 6,186.59. Banking shares rallied after the Federal Reserve approved plans by large banks to return a pile of cash to shareholders. Bank of America, Citigroup and JP Morgan Chase all gained at least 2.5 percent.
Ride Aid plunged 26.6 percent after it reached a deal to sell about half its stores to rival Walgreens Boots Alliance and spiked an earlier takeover proposal opposed by antitrust regulators. Walgreens shares rose 2.9 percent. Staples jumped 2.0 percent on news it reached a deal to be acquired by Sycamore Partners for about $6.9 billion.
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