Major US equity indices witnessed a mixed opening on Thursday, with a sharp fall in technology stocks overshadowing positive trade-related developments.
The US and the EU agreed to work toward eliminating tariffs and negotiate on trade, which triggered a fresh wave of risk-on trade across global financial markets. The optimism, however, was largely offset by disappointing quarterly results the social-media giant – Facebook.
A slump in Facebook took along the high-growth FAANG group of stocks and weighed heavily on tech-heavy Nasdaq Composite Index, fueling some cautiousness as investors continue to monitor the second-quarter earnings season.
Meanwhile, European markets cheered Wednesday’s upbeat meeting between the US President Donald Trump and European Commission President Jean-Claude Juncker, and the spillover effect provided a goodish lift to the blue-chip Dow Jones Industrial Average (DJIA).
During the opening hour of trade, the DJIA rallied nearly 150-points to 25,560. Conversely, the broader S&P 500 Index traded with a loss of around 8-points to 2,838 and Nasdaq tumbled nearly 100-points to 7,837.
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