Economy

Hot Tech Stocks Reverse Course, Sending Market Into A Tailspin

Hot Tech Stocks Reverse Course, Sending Market Into A Tailspin”

The dizzying drop in prices follows a string of record-high trading days, largely fueled by a few superstar tech stocks, such as Facebook, Apple and Amazon.

Big Tech companies have made outsize gains in recent months as investors bet that they would continue posting huge profits even with many coronavirus restrictions still in place as people spend even more time online with their devices. Market watchers have been questioning recently whether those gains were overdone.

Technology stocks, which account for a significant chunk of the USA stock market's value these days, fell broadly.

Apple's shares dropped more than $8, or almost 6.5%, to just under $123.

The volatility in the market comes at a time of ongoing concern about the pandemic's impact on the economy.

One day after finishing above 29,000 for the first time since the pre-pandemic days of February, the Dow Jones Industrial Average was down almost 900 points, a decline of more than 3%.

Semiconductor stocks also fell sharply. The index sank 3.5% and the Nasdaq Composite lost 5% on Thursday.Futures on Japan's Nikkei 225 declined 1.9%.Hang Seng futures retreated 1.3%.Futures on Australia's S&P/ASX 200 Index fell 1.9%.

The stocks that were doing better than the rest of the market were companies whose stocks have been beaten down this year: travel companies and airlines.

Investors were also taking into account the latest economic figures.

More news: Trump Bashes Pelosi Over Salon Appointment That Flouted COVID-19 Rules

A gauge of the services sector also came in slightly worse than economists were looking for.

He said investors "are in love with tech stocks and it's going to take more than this for them to fall out of love with them".

U.S.jobs report Friday is forecast to show payrolls continued to rebound in August from virus lows.

USA traders have numerous macroeconomic releases to look forward to, including the non-manufacturing ISM (Institute for Supply Management) and final services purchasing managers' index (PMI) for August, and July's final trade data. Tens of millions of Americans remain unemployed however, as seen by this week's unemployment benefits numbers. A Nasdaq correction was more or less "understandable", given that numerous companies listed are at "absurd valuations", David Bahnsen, chief investment officer at the California-based Bahnsen Group, told Yahoo Finance.

But analysts have cautioned that the market was due for a pullback given elevated unemployment as the U.S. continues to contend with the coronavirus pandemic.

Macroeconomic data releases from the U.S. don't seem to be having a significant impact on market sentiment.

The MSCI Asia Pacific Index fell 0.4%.

West Texas Intermediate crude declined 0.5% to $41.18 a barrel.Gold was at $1,931.08 an ounce, little changed.



Like this

loading...
loading...

Latest


04 September 2020
Pac-12 reaches agreement for rapid COVID testing
Still, in light of the news, Scott said he's now "hopeful" there could be a pathway for Pac-12 sports to begin before January 1. The early availability of the testing means that the conference could potentially start playing sports later this year.

04 September 2020
USA media: CDC urging states to prepare for vaccine
Several vaccine candidates have been in Phase Three clinical trials, with production ramping up in the event any of them are ultimately approved for use.

04 September 2020
Province Reports No New Cases of COVID-19
The COVID Alert SA app will alert people when they have been in close contact with a person who has tested positive for the virus. COVID Alert SA is built on the exposure notification Application Programming Interface (API), securing user privacy.

04 September 2020
Patriots name Cam Newton starting QB
The New England Patriots have named Cam Newton their starting quarterback, The Boston Globe reports . Mark Inabinett is a sports reporter for Alabama Media Group.

04 September 2020
Australia's Finch says Labuschagne may have to wait for T20 turn
The England-Australia rivalry is always huge, he added, regardless of who you are playing in front of and where you are playing. We had to make Australians back home proud of us and hopefully we've done that, on and off the cricket field".

04 September 2020
Australia: Pregnant woman arrested for advocating against lockdown on social media
She was handcuffed in her home yesterday after allegedly organising an anti-lockdown protest on Saturday in Ballarat. She also apologised for her "bimbo moment" and said police were "nice" to her down at the station, reports Yahoo .

04 September 2020
David Byrne Apologises For Donning Blackface In ‘Stop Making Sense’ Concert Film
Though Byrne admitted he'd "just about forgotten about this skit", he insisted he was "grateful" to have it brought to his attention.

03 September 2020
Koeman wants Wijnaldum, but Barcelona must make sales first
Georginio Wijnaldum is on the verge of joining Barcelona , in a reported €20 million transfer from Liverpool . Liverpool midfielder Georginio Wijnaldum has agreed on personal terms with Laliga giants FC Barcelona .

03 September 2020
Facebook, Twitter remove accounts linked to Russian network
The website published over 700 articles in English and Arabic between February and August this year. Both Facebook and Twitter have detected accounts associated with the site and removed them.

03 September 2020
Beijing pillories Pentagon report on Chinese military ambitions
If China does not join the treaty, known as the New START, the US might let the deal expire in February of 2021. The Tuesday report suggested that China is moving its strategic nuclear arsenal to a more rapid launch footing.