Major Averages Close Sharply Lower But Off Worst Levels Of The Day

(RTTNews) - Stocks moved sharply lower over the course of the trading day on Thursday, adding to the losses posted in the previous session. The sell-off extended a recent pullback by the markets, with the tech-heavy Nasdaq closing lower for the fourth straight day.

While most of the major sectors came under pressure on the day, biotechnology stocks showed a substantial move to the downside. The NYSE Arca Biotechnology Index tumbled by 3 percent to its lowest closing level in well over two months.

Celgene (CELG) turned in one of the biotech sector's worst performances after reporting weaker than expected first quarter revenues. Nektar Therapeutics (NKTR) also posted a steep loss ahead of the release of its quarterly results after the close of trading.

Significant weakness was also visible among gold stocks, as reflected by the 2.9 percent loss posted by the NYSE Arca Gold Bugs Index. The index gave back ground after ending the previous session at a nearly two-month closing high.

The pullback by gold stocks came amid a steep drop by the price of the precious metal, with gold for June delivery plunging $27.60 to $1,182.40 an ounce.

Brokerage stocks also saw considerable weakness on the day, resulting in a 2.3 percent loss by the NYSE Arca Broker/Dealer Index. The drop by the index came after it ended the previous session at a seven-year closing high.

Networking, commercial real estate, health care and electronic storage also came under pressure, moving lower along with most of the other major sectors.

The major averages closed firmly in negative territory but off their worst levels of the day. The Dow tumbled 195.01 points or 1.1 percent to 17,840.52, the Nasdaq plummeted 82.22 points or 1.6 percent to 4,941.42 and the S&P 500 slid 21.34 points or 1 percent to 2,085.51.