The Globe and Mail reports in its Friday edition that U.S. stocks tumbled on Thursday, reversing early gains as investors continued to rotate away from high-priced megacap growth stocks and second-quarter earnings season gathered steam. A Reuters dispatch to The Globe says that all three major U.S. stock indexes suffered losses, and the blue-chip Dow fell the most. The S&P/TSX Composite Index ended down 124.41 points at 22,726.76. The Russell 2000 fell for the second day in a row after an apparent rotation into small caps sent the index soaring 11.5 per cent in just five days. "Investors [are] just pulling back and saying 'We're going to cash out now, it's been a great run.' They're unsure what's going to happen in terms of politics," said Tim Ghriskey at Ingalls in New York. U.S. initial jobless claims data landed above analysts' estimates, providing further evidence that the labour market is softening. "The elements are still in place for multiyear strong returns on markets. Inflation has been tamed, interest rates I'm certain are going to be cut globally in the next few months or so. It's just we got pretty spicy in terms of valuations for a lot of companies," said Barry Schwartz at Baskin Wealth Management.