S&P 500 Index opens deep in red, stays above 3,550

S&P 500 goes into consolidation after impressive rally.
Investors don't seem to be paying any mind to mixed US data.
Technology shares suffer heavy losses and weigh on Nasdaq Composite

Eren Sengezer FXStreet

After posting yet another record daily closing at 3,580 on Wednesday, the S&P 500 Index opened sharply lower on Thursday and was last seen losing 0.55% on the day at 3,560. Meanwhile, the Dow Jones Industrial Average was virtually unchanged on a daily basis at 29,090 and the Nasdaq Composite was losing 1.4% at 11,885.

Macroeconomic data releases from the US don't seem to be having a significant impact on market sentiment.

US: Weekly Initial Jobless Claims decline by 130,000 to 881,000.

US: Trade deficit widens to $63.6 billion in July.

US: Unit Labor Costs rise by 9% in Q2 vs. 12.1% expected.

The S&P 500 Technology Index, which registered impressive gains during the risk rally witnessed in the first half of the week, is staging a deep correction and was last down nearly 2% on the day.

On the other hand, the defensive sectors, Utilities, Real Estate and Consumer Staples, are up between 0.7% and 0.3% in the early trade.

S&P 500 chart (daily)

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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