U.S. stocks fall as tech selloff continues; Dow drops 0.89%


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Investing.com - U.S. stocks dropped on Friday amid a multi-session sell-off in the technology and biotechnology sectors, as investors felt valuations have grown too lofty, while disappointing earnings from JPMorgan Chase dampened spirits as well.

At the close of U.S. trading, the Dow 30 fell 0.89%, the S&P 500 index fell 0.95%, while the Nasdaq index fell 1.34%.

Biotech, Internet and other tech companies fell on Friday amid growing concerns that valuations have grown too frothy after a five-year bull market fueled in part by loose monetary policies.

Elsewhere, U.S. financial giant J P Morgan Chase & Co (NYSE:JPM) announced a 19% drop in first-quarter earnings, which added to the selloff.

Solid U.S. data did little to boost spirits on Wall Street.

The preliminary Thomson Reuters/University of Michigan consumer sentiment index for April came to 82.6, beating expectations for a 81.0 reading.

Separately, official data showed that the U.S. producer price index rose 0.5% in March, exceeding expectations for a 0.1% gain, after a 0.1% fall the previous month.

Core producer price inflation, which is stripped of volatile food, energy and trade items, rose 0.6% in March, beating expectations for a 0.2% rise after a 0.2% decline in February.

Leading Dow Jones Industrial Average performers included The Travelers Companies Inc (NYSE:TRV), up 0.36%, Johnson & Johnson (NYSE:JNJ), up 0.32%, and Chevron Corporation (NYSE:CVX), up 0.30%.

The Dow Jones Industrial Average's worst performers included J P Morgan Chase & Co (NYSE:JPM), down 3.65%, Pfizer Inc (NYSE:PFE), down 2.43%, and Visa Inc (NYSE:V), down 2.34%.

European indices, meanwhile, finished lower.

After the close of European trade, the DJ Euro Stoxx 50 fell 1.22%, France's CAC 40 fell 1.08%, while Germany's DAX fell 1.47%. Meanwhile, in the U.K. the FTSE 100 fell 1.21%.

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