U.S. stocks fall broadly on Wednesday, as early morning rally fades
Investing.com -- U.S. stocks fell broadly on Wednesday as an early-morning rally inspired by a surge in Asian equities faded, amid sharp losses in energy stocks and a sell-off in Apple shares (NASDAQ:AAPL).
The Dow Jones Industrial Average and NASDAQ Composite index dropped by more than 1% on Wednesday, as investors remained uncertain on whether the Federal Open Market Committee will hike its benchmark interest rate at a two-day meeting next week. U.S. job openings in July surged to a 15-year series high, according to a survey released by the Labor Department on Wednesday, providing support for a September rate hike. It comes on the heels of a mixed August employment report on Friday, which bolstered arguments to keep rates unchanged.
The Dow remained in correction territory after dropping 239.11 or 1.45% to 16,253.57, while the NASDAQ lost 55.40 or 1.15% to close at 4,756.53. The S&P 500 Composite index, meanwhile, dipped 27.37 or 1.39% to 1,942.04, as all 10 sectors closed in the red. Shares in the Energy, Consumer Goods and Health Care industries lagged, each falling more than 1.5%.
Shares in Apple fell considerably in the immediate aftermath of the tech giant's swanky media presentation on Wednesday in San Francisco, where it unveiled new versions of its iPad and iPhone products, as well as a revamped version of its Apple TV. While Apple shares opened roughly 15% down from its all-time high reached earlier in 2015, they rose by more than 1.5% on Wednesday morning to a session-high of 114.00, in anticipation of the event. Apple's latest version of the iPad, the iPad Pro, contains an A9X chip which officials claim is 1.8 times faster than its predecessor. It also includes a 12.9 inch display screen that is significantly larger than previous versions. Apple has also added a pair of new features to the latest iPad with the addition of a keyboard and a stylus, the Apple Pencil.
'Today, we have the biggest news in iPad since the iPad,' Apple CEO Tim Cook said. 'This is the most capable and powerful iPad we have ever created.'
Apple also launched a new iPhone at the event, the iPhone 6S, which will become available for preordering on Sept. 12 at $199 for a two-year contract. The latest version will contain new 3D touch sensors, which allows for multitasking between several apps simultaneously. The company also upgraded its Apple TV product with a new interface and new remote. Still, shares in Apple fell 2.34 or 2.08% to 109.97.
The top performer on the Dow was GS, which gained 0.03 or 0.02% to 185.91 after receiving an upgrade from Bank of America (NYSE:BAC). Goldman Sachs (NYSE:GS) ended the session as the only Dow component to close in the green. The worst performer was CVX, which fell 1.84 or 2.39% to 75.00, after U.S. crude tumbled by nearly 4% on Wednesday's session. Shares in Chevron (NYSE:CVX) are down by more than 38% over the last year.
The biggest gainer on the NASDAQ was Netflix Inc (NASDAQ:NFLX), which surged 3.94 or 4.15% to 98.89, ending a seven-day losing streak. The worst performer was Chicago-based waste disposal company Stericycle Inc . (NASDAQ:SRCL), which fell 8.46 or 5.81% to 137.15, after announcing an offering of mandatory convertible preferred stock earlier in the session.
Netflix also closed on Wednesday as the top performer on the S&P 500, ahead of Freeport-McMoran Copper & Gold Inc (NYSE:FCX), which rose 0.38 or 3.65% to 10.78. The worst performer was Marathon Oil Corporation (NYSE:MRO), which plunged 1.41 or 8.64% to 14.91.
On the New York Stock Exchange, declining issues outnumbered advancing ones by a 2,320 to 789 margin.
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