Major Averages Close Firmly Negative, Nasdaq Underperforms Once Again

(RTTNews) - After failing to sustain an initial upward move, stocks moved notably lower over the course of the trading day on Friday. Technology stocks helped to lead the markets lower, contributing to a particularly steep drop by the tech-heavy Nasdaq.

While tech stocks helped to lead the markets lower, substantial weakness was also visible in the brokerage sector. The NYSE Arca Broker/Dealer Index plunged by 3.6 percent to its lowest closing level in almost two months.

E*Trade (ETFC) and KCG Holdings (KCG) turned in two of the brokerage sector's worst performances, tumbling by 7.9 percent and 6.9 percent, respectively.

Biotechnology stocks also extended the steep drop seen in the previous session, with the NYSE Arca Biotechnology Index falling by 3.2 percent. Illumina (ILMN), Alexion Pharmaceuticals (ALXN), and InterMune (ITMN) posted steep losses.

Significant weakness among electronic storage, semiconductor, and networking stocks also contributed to the sharp drop by the tech-heavy Nasdaq.

Most of the other major sectors also came under pressure on the day, with airline, defense, and telecom stocks seeing notable weakness.

The Nasdaq substantially underperformed its counterparts for the second straight day, plunging by 110.01 points or 2.6 percent to 4,127.73. The Dow fell 159.84 points or 1 percent to 16,412.71 and the S&P 500 slid 23.68 points or 1.3 percent to 1,865.09.

For the week, the major averages turned in a mixed performance. While the Nasdaq dropped by 0.7 percent, the Dow and the S&P 500 rose by 0.5 percent and 0.4 percent, respectively.