Investing.com – Wall Street closed sharply lower on Thursday as the selloff resumed offsetting bullish earnings and upbeat labor market data.
The Dow Jones Industrial Average closed lower at 23,860. The S&P 500 closed 3.75% lower, while the Nasdaq Composite closed at 6777.16, down 2.93%.
Also weighing on sentiment was uncertainty over whether a far-reaching budget deal would be approval amid a CNBC report suggesting that Rand Paul was holding up the Senate's vote on the deal.
The vote comes amid opposition from both sides of the political isle amid concerns that the budget deal does nothing for young immigrants. The budget deal would have to be passed before midnight to avoid a government shutdown.
Upbeat labor market did little to boost sentiment amid widespread fear in the market as all sectors fell more than 1% with financials leading the decline, down roughly 4.5%, despite the prospect of higher interest rates.
Higher interest rates are seen as boon for banks, boosting net interest margin – the difference between the interest income generated by banks and the amount of interest paid out to their lenders.
The U.S. Department of Labor reported Thursday that initial jobless claims decreased 9,000 to a seasonally adjusted 221,000 for the week ended Feb. 4, beating forecast for a 6,000 increase.
In corporate earnings news, Nvidia reported Q4 revenue of $2.91 billion, up 34% from year ago levels, beating analyst consensus of $2.68 billion. Non-GAAP earnings were $1.72 per share, up 52% from the $1.13 per share posted a year earlier and well ahead of expectations of $1.32 per share.
NVIDIA Corporation (NASDAQ:NVDA) rose more than 10% in aftermarket trade, after closing down nearly 5% at $217.52.
'Bulls and Bears' on Wall Street
American Express Company (NYSE:AXP) down 5.6%, Intel Corporation (NASDAQ:INTC) down 5.4%, and Caterpillar Inc (NYSE:CAT) down 5.4%, were among the worst Dow performers of the session