US stock futures fell on Thursday as investors braced for data likely to show persistently high levels of weekly jobless claims, adding to concerns about an economic rebound a day after the Federal Reserve issued an underwhelming stimulus plan.
The Dow ended just barely lower on the week, while the S&P 500 fell 0.7 percent and the NASDAQ dropped 0.6 percent.
Because these companies have grown so massive, their stock movements have huge sway over broad market indexes, such as the S&P 500.
General Electric Co rose 3.7% after Chief Executive Officer Larry Culp said on Wednesday the company's free cash flow would turn positive in the second half.
The Nasdaq is up 2,077.86 points, or 23.2%.
"They had an incredible last week of August, and I think this is a rational profit-taking scenario at the moment".
Dollarhide said he expects tech-related names to bounce back before the end of the year.
On the day, the Dow was off 1.2% at 27,570, the S&P 500 index was trading 1.5% lower at 3,307, well below its 50-day moving average at around 3,343.34, according to FactSet data.
Out of the 11 major S&P 500 sectors, financials and industrials rose the most, while technology, real estate and utilities were the biggest decliners.
Carnival and United Airlines both fell 2%.
Stocks initially got a boost after the central bank signaled it will keep interest rates near zero into 2023 and issued a slightly less dire outlook for economic growth and unemployment this year.
The Labor Department's weekly report, due at 8:30 a.m. ET, is expected to show about 850,000 Americans filed for unemployment benefits in the week ended September 12, a touch lower than 884,000 in the previous week, but still suggesting the labor market's recovery from the COVID-19 pandemic was stalling. Low rates typically turbocharge the market by encouraging investors to pay higher prices for stocks, but some investors may have been looking for the Fed to be more aggressive.
Ford Motor Co added 3.3% as it said it had begun production of the new generation F-150 pickup truck at its MI facility.
The Nasdaq is up 1,820.68 points, or 20.3%.
The S&P index recorded seven new 52-week highs and no new low, while the Nasdaq recorded 39 new highs and four new lows.
Volume on USA exchanges was 9.70 billion shares, compared with the 9.47 billion average for the full session over the last 20 trading days.