Concerns that interest rates are going to rise took their toll on Wall Street, especially on technology stocks.
Tech issues took a beating on Wall Street again Thursday as investors continued to exercise caution amid fears of expected interest-rate increases. Economic reports didn't help, either. The Commerce Department said the gross domestic product grew 4.2% in the first quarter, indicating economic growth that was well below expectations. Meanwhile, higher-than-expected rises in the chain price deflator, personal consumption spending index, and employment cost index confirmed concerns that inflation is under way.
Thursday's sell-off left all areas of the technology sector reeling. Among the most active issues, Cisco Systems was down 46 cents, or more than 2%, to $21.91; Applied Materials fell 51 cents, or 2.7%, to $18.43; Dell Computer was down 36 cents, or 1%, to $35.29; Oracle fell 47 cents, or 3.95%, to $11.43; and Yahoo fell $1.12, or 2%, to $54.71. One notable anomaly was change-management software vendor Marimba, which rose $3.20, or 65.7%, to $8.07 on news that it was being acquired by BMC Software, which fell $1.45, or 7.4%, to $18.05. The Nasdaq-100 trading stock was down 57 cents, or 1.6%, to $35.63, on heavy volume of 151.2 million shares.
While all the major indexes had a rough day, the tech-heavy Nasdaq and InformationWeek 100 were hardest hit. The InformationWeek 100 fell 5.89, or 1.8%, to 314.64, while the Nasdaq fell 30.76, or 1.6%, to close at 1,958.78. The Dow Jones Industrials fell 70.33, or 0.7%, to finish at 10,272.27, and the S&P 500 fell 8.53, or 0.8%, to 1,113.89.
See the full listing of all the companies in the InformationWeek 100 and the top 5 percentage winners and losers for the last closing at http://www.informationweek.com/stock.
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.