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* Peloton tumbles after report co is pausing production
* Travelers up after reporting record quarterly profit
(Updates with close of U.S. market)
Jan 20 (Reuters) - Wall Street's main indexes fell on
Thursday and a rally in U.S. stocks faded late in the session as
investors debated whether equities were becoming bargains after
a sell-off to start the year that has seen the Nasdaq fall into
Major U.S. indexes had been up sharply for much of the day
after a steep drop to start the week. The Nasdaq on Wednesday
closed 10.7% below its November all-time high, confirming it was
in a correction.
There seems to be a whole lack of conviction," said Randy
Frederick, vice president of trading and derivatives for Charles
Schwab. "The dip-buyers step in, but then they run out of
According to preliminary data, the S&P 500 lost 50.40
points, or 1.11%, to end at 4,482.36 points, while the Nasdaq
Composite lost 185.31 points, or 1.30%, to 14,154.94.
The Dow Jones Industrial Average fell 315.30 points, or
0.91%, to 34,709.00.
Putting a damper on growth stocks, shares of Peloton
tumbled after CNBC reported that the exercise bike
maker is pausing production of its connected fitness products as
demand wanes and the company looks to control costs. Peloton was
one of the mainstays of the stay-at-home trade in 2020.
Stocks have gotten off to a rocky start in 2022, as a fast
rise in Treasury yields amid concerns the Federal Reserve will
become aggressive in controlling inflation has particularly hit
tech and growth shares.
Treasury yields were relatively steady on Thursday, after
dropping from two-year highs on Wednesday.
Just the fact that they have not gone any higher... at
least for the day it's a welcome reprieve from the steady march
higher that we have experienced, said David Joy, chief market
strategist at Ameriprise Financial.
Investors are also turning to fourth-quarter earnings
reports as they start to roll in.
Shares of Travelers Cos https://www.reuters.com/business/finance/us-insurer-travelers-posts-record-profit-investment-returns-2022-01-20
rose after the property and casualty insurer reported a
record quarterly profit.
Data on Thursday showed the number of Americans filing new
claims for unemployment https://www.reuters.com/world/us/us-weekly-jobless-claims-increase-amid-omicron-surge-2022-01-20
benefits unexpectedly rose last week, likely as a winter wave
of COVID-19 infections disrupted business activity.
(Reporting by Lewis Krauskopf in New York, Bansari Mayur Kamdar
and Shreyashi Sanyal in Bengaluru; Editing by Aditya Soni and