U.S. stocks closed lower on Thursday as renewed tech share selloff washed out earlier gains from the big banks.
The Dow Jones Industrial Average was down 167.58 points, or 0.78 percent, to 21,287.03. The S&P 500 lost 20.99 points, or 0.86 percent, to 2,419.70.
The Nasdaq Composite Index decreased 90.06 points, or 1.44 percent, to 6,144.35.
Tech has been one of the best performing sectors so far this year, rising more than 15 percent already. But over the past month it has dropped quite a lot as some investors believe large-cap tech stocks are currently overvalued.
Shares of Facebook, Amazon, and Apple dropped more than 1.4 percent while Netflix and Google-parent Alphabet both lost more than 2 percent.
Chip stocks also fell, with Nvidia and Advanced Micro Devices trading 3.34 percent and 4.76 percent lower respectively.
The Federal Reserve on Wednesday allowed biggest U.S. banks to buy back shares and raise dividends with extra capital, judging their financial foundations sound enough to withstand a major economic crisis.
This is the seventh round of stress tests conducted by the central bank since 2009. The 34 banks represent more than 75 percent of the assets of all U.S. domestic banks.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, rose as high as 15.16 on Thursday.
On the economic front, the country's real gross domestic product (GDP) increased at an annual rate of 1.4 percent in the first quarter, according to the "third" estimate released by the the Commerce Department.
Consumer spending was revised to show a 1.1 percent increase from a prior 0.6 percent reading, said the department.
In the week ending June 24, the advance figure for seasonally adjusted initial jobless claims was 244,000, an increase of 2,000 from the previous week's revised level, the Labor Department said on Thursday. The latest reading was above market consensus of 241,000.
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