Economy

Stocks drop sharply as tech sector stumbles; Apple down 7.1%

Stocks drop sharply as tech sector stumbles; Apple down 7.1%”

At 3:01 p.m. EDT, the Dow Jones Industrial Average was down 45.69 points, or 0.16%, at 28,247.04, the S&P 500 lost 16.32 points, or 0.47%, to 3,438.74 and the Nasdaq Composite dropped 116.73 points, or 1.02%, to 11,341.37.

The S&P 500 tech sector sank 1.34 percent, following a 5.83-percent drop in the previous session.

The US stock market took a dive on Thursday, with the tech industry getting hit the hardest, making it the worst day for the market since June. And yet, Apple is still up 64.8% this year, while Amazon is up 78.3%.

But market volatility is part of investing in the stock market, and sticking to your plan will do much more good than panicking. Although the virus has upended most other businesses, big technology companies has weathered the crisis as people relied on apps and software to work, stream movies and communicate with friends and family.

Despite this week's stumble, the S&P 500 is up 6.4 percent for the year following a five-month comeback from its lows in the spring.

The MSCI Asia Pacific Index fell 0.4%.

The Dow, meanwhile, has fallen 1.1% this week.

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"A pullback in tech stocks right now is understandable", David Bahnsen, the chief investment officer at the Bahnsen Group, said in a commentary Thursday. "The market is still settling into what's a fair valuation of these companies".

Highlighting the narrowness of the unwind, an equalweight version of the S&P 500 index that gives beauty firm Coty just as much clout as Microsoft lost only a third of the mcap-weighted version in the biggest performance gap since July.

While Thursday's sell-off already reflected investor fears that valuations for Nasdaq high-flyers had overheated, the worries were exacerbated on Friday by the Financial Times (FT) and others reporting that options trading by Japan's Softbank had inflated these stocks. Markets in China also closed broadly lower.

"The drivers are a little bit unclear", added Mr. The next big data focus for investors is Friday morning's monthly payrolls report.

Like we've said throughout the ups and downs of the recent market: diversification without the panic will go a long way. "We continue to be optimistic that the economy has turned a corner and that we'll continue to see steady progress". The broader market fared better, with the S&P 500 Index down less than one per cent in the afternoon.

Wall Street's main indexes plunged on Friday as a huge sell off of technology stocks continued for a second day and overshadowed data showing a steeper-than-expected drop in the unemployment rate in August.



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