GLOBAL MARKETS-Tech stocks defy downbeat data as dollar, global equities retreat

(Updates with U.S. stock market close)
* Oil prices fall on concern about oversupply
* U.S. jobless claims reinforce view of slower U.S. recovery
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
* Graphic: Global stocks since Feb https://tmsnrt.rs/2CH2eSe
* Reuters Live Markets blog: LIVE/

By Alwyn Scott
NEW YORK, Aug 20 (Reuters) - The dollar eased and global
equity markets fell on Thursday, even as the tech-heavy NASDAQ
index touched a record high and looked past the growing signs of
prolonged economic weakness. Gold also rose in a sign of
safe-haven buying.
Economic concerns weighed on equities earlier in the day,
reflecting Wednesday's concern from the Federal Reserve about
the U.S. labor market slackening as U.S. coronavirus cases rise.
That pessimism was reinforced on Thursday by a surprise jump
of more than 1 million in new U.S. claims for unemployment
assistance, which sent broader stock indices lower.
The new jobless claims reading was well above the forecast
of economists polled by Reuters that expected 925,000 new
applications in the latest week. "Anytime there's concern about the economic recovery, that
always hurts," said Tim Ghriskey, chief investment strategist at
Inverness Counsel in New York.
But U.S. tech stocks defied the downbeat mood and extended
their upward streak. The Nasdaq surged to a fresh record high,
led by gains in Apple Inc AAPL.O , Microsoft Corp MFST.O and
Tesla Inc TSLA.O .
The tech-heavy index is 15% higher than its pre-COVID peak
in February, while the broad S&P 500 slid from a new all-time
high set Wednesday, to below its previous peak also reached six
months ago.
"The love for technology stocks grew as the favorite
pandemic plays, such as Apple and Tesla, saw strong demand,"
Edward Moya, senior market analyst at OANDA in New York, said in
a note. "No one wants to short this market, so we are seeing
investors just rotate back into technology stocks today."
The MSCI world equity index .MIWD00000PUS , which tracks
shares in 49 nations, fell 0.3% to 570.18.
The Dow Jones Industrial Average .DJI rose 0.2%, the S&P
500 .SPX gained 0.3% and the Nasdaq Composite .IXIC added
1.1%.
Oil prices fell about 1%, meanwhile, as concerns mounted
about excess crude supplies. The decline came after Reuters
reported that some members of the Organization of the Petroleum
Exporting Countries and its allies, known an OPEC+, would need
to cut output by an extra 2.31 million barrels per day (bpd) to
make up for recent oversupply.
OPEC+ had said on Wednesday the oil market recovery appeared
to be slower than anticipated with growing risks of a prolonged
second wave of the pandemic. U.S. crude futures settled down 0.8% at $42.58 per barrel.
Brent crude futures LCOc1 settled at $44.90 per barrel, down
1%.
The dollar had been gaining ground since hitting a 27-month
low it hit on Tuesday. On Thursday, the dollar index =USD fell
0.168%, with the euro EUR= up 0.13% to $1.1851.
The Japanese yen strengthened 0.22% versus the greenback at
105.89 per dollar, while Sterling GBP= was last trading at
$1.3194, up 0.73% on the day.
Wall Street was knocked from its recent highs on Wednesday
after the Fed's minutes from its July meeting spooked investors
by showing that the swift labor market rebound seen in May and
June had likely slowed. The S&P 500 had reached an all-time high earlier in the week
as prices recovered to their pre-pandemic levels.
The sudden bearishness spilled into Asian markets overnight
and continued in the European session, although shares started
to recover as the morning progressed.
Several Fed policymakers said they may need to ease monetary
policy to help get the economy through the coronavirus pandemic.
Gold rebounded overnight and after the U.S. jobless data on
demand for the safe-haven asset. Spot gold XAU= added 0.8% to $1,945.61 an ounce. U.S. gold
futures GCv1 settled down 1.2% to $1,946.50 an ounce.

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Emerging markets http://tmsnrt.rs/2ihRugV
World stocks and oil vs COVID-19 https://tmsnrt.rs/2CzO5pX
Major global stock market performance since February https://tmsnrt.rs/2CH2eSe
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