Nasdaq falls 2.5%+ as techs tumble

U.S. stocks dropped as technology shares took a back seat to cyclical names and as investors digested a jump in producer prices and higher jobless claims.

The Nasdaq Composite lost 2.5%, while the S&P 500 dipped 1.4% and the Dow Jones Industrial Average slipped 0.5% or 175 points. 

Ticker	Security	Last	Change	Change %
I:DJI	DOW JONES AVERAGES	43870.35	+461.88	+1.06%
SP500	S&P 500	5948.71	+31.60	+0.53%
I:COMP	NASDAQ COMPOSITE INDEX	18972.420086	+6.28	+0.03%

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Microsoft and Salesforce fell in broad tech weakness, while Boeing and Caterpillar rose in the cyclical trade. 

Ticker	Security	Last	Change	Change %
MSFT	MICROSOFT CORP.	412.87	-1.79	-0.43%
CRM	SALESFORCE INC.	335.82	+10.13	+3.11%
BA	THE BOEING CO.	143.41	-2.67	-1.83%
CAT	CATERPILLAR INC.	389.57	+8.13	+2.13%

In economic data, the December producer price index jumped by 9.7% a record, while month-over-month prices rose 0.2%, less than expected. Factoring out volatile food and energy costs, core producer prices rose 0.5% in December, slightly below November’s 0.7% gain. Year-over-year look core PPI rose 8.3% in December.

On Wednesday consumer prices rose 7% the most since 1982. 

INFLATION SURGES 7% IN DECEMBER, HIGHEST RATE IN 40 YEARS

New claims for unemployment benefits unexpectedly rose by 230,000 last week and above a 52-year low of 188,000 reported in the first week of December. Continuing claims, which track the total number of unemployed workers collecting benefits, fell to 1.55 million. 

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In other stocks, Ford rallied to a new milestone topping the $100 billion in market value, compared to General Motors $91 billion. 

Ticker	Security	Last	Change	Change %
F	FORD MOTOR CO.	10.81	+0.09	+0.79%
GM	GENERAL MOTORS CO.	55.67	+0.79	+1.44%

Delta Airlines also rose after CEO Ed Bastian signaled a recovery by mid-first quarter after the airline posted a loss of $408 million tied to COVID disruptions. 8,000 of his employees have tested positive for the virus. United Airlines also disclosed 3,000 of its employees were infected resulting in flight cancellations. 

Ticker	Security	Last	Change	Change %
DAL	DELTA AIR LINES INC.	63.34	-0.28	-0.45%
UAL	UNITED AIRLINES HOLDINGS INC.	94.40	-0.23	-0.24%

Taiwan Semiconductor is a winner after posting record quarterly profits and forecasting revenue of as much as $17 billion, higher than the same period a year ago. 

Ticker	Security	Last	Change	Change %
TSM	TAIWAN SEMICONDUCTOR MANUFACTURING CO. LTD.	191.24	+2.83	+1.50%

RIchard Branson's Virgin Orbit has a satellite launch later this afternoon, while Virgin Galactic rolled out a $425 million bond offering. 

Ticker	Security	Last	Change	Change %
VORB	NO DATA AVAILABLE	-	-	-
SPCE	VIRGIN GALACTIC HOLDINGS INC.	6.72	+0.04	+0.60%

AMC shares dropped after CEO Adam Aron said he was done selling big chunks of stock.

Ticker	Security	Last	Change	Change %
AMC	AMC ENTERTAINMENT	4.49	+0.04	+0.90%

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Vaccine makers continue to report developments with Moderna disclosing it will release data for treating children 2 to 5 years of age by March. 

Ticker	Security	Last	Change	Change %
MRNA	MODERNA INC.	38.25	+1.31	+3.55%

In commodities, oil slipped to the $81-per-barrel level. 

Ticker	Security	Last	Change	Change %
USO	UNITED STATES OIL FUND - USD ACC	73.20	+1.18	+1.64%

 Cryptocurrencies saw more downward pressure with Bitcoin slipped. 

In Europe, London's FTSE slipped 0.2%, Germany's DAX was off 0.2% and France's CAC declined 0.5%.

In Asia, Tokyo's Nikkei 225 index dropped 1%, the Hang Seng in Hong Kong edged 0.1% higher, while China's Shanghai Composite shed 1.2%.

FOX Business' Ken Martin and The Associated Press contributed to this report.