Dow drops 103 points in sixth consecutive negative session

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May 12 (UPI) — The Dow Jones Industrial Average fell for the sixth consecutive day amid a volatile day of trading Thursday.

The blue-chip Dow closed the day down 103.81 points, or 0.33%, after it was up as much as 80 points at session highs, while the Nasdaq Composite eked out gains, closing the day up 0.059%, after it was up 1.6% at session highs.

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The S&P 500 fell 0.13% to 3,930.08, its lowest point in 2022, leaving it more than 18% off its 52-week high and on the brink of bear market territory.

The Nasdaq is the only one of the three major indexes that have declined more than 30% from a record high.

“Even if you say we’re in a bear market, there’s rallies within bear markets that can be very sharp,” Truist’s Keith Lerner said.

“I think, at least short-term, and given how oversold we are and given that we’re starting to see people nibble at some of these areas that have been the most beaten up, I think that’s at least a silver lining in a sea of red and gloom over the last couple of days.”

Heavily shorted names including popular “meme stocks” GameStop and AMC climbed more than 30% and 20%, respectively, before pulling gains back. GameStop closed up 10.13% and AMC rose 8.06%.

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Shares of Disney fell 0.86% after warning of COVID-19 impacts on parks in Asia despite beating earnings expectations on Wednesday.

Apple stock fell 2.69%, while Amazon and Facebook parent, Meta, each rose more than 1%.

Multiple factors weighed on the markets Thursday as bitcoin values fell below $26,000 for the first time in more than a year following a sell-off that wiped out more than $200 billion from the crypto market in a single day.

Shares of stock trading app Robinhood also more than 30% in after-hours trading as Sam Bankman-Fried, CEO of of crypto exchange FTX, purchased a 7.6% stake in the company, according to an SEC filing.

Meanwhile, the Labor Department reported that unemployment filings last week rose by 203,000, surpassing 200,000 for the first time since February, and its Producer Price Index showed that wholesale prices climbed by 11% from April 2021 through last month.

Investors also still were processing the April Consumer Price Index — which shows the average change in prices for goods and services — increased by 0.3% last month, while the increase over the past 12 months was 8.3%.

“Inflation appears to be entrenched within many areas of the economy and regardless if we have witnessed inflation peak, a persistently slow grind lower will be more problematic for the Fed to simultaneously cool inflation without tipping the economy into recession,” Charlie Ripley, a senior investment strategist at Allianz Investment Management, said in an emailed note, according to Yahoo Finance.

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