Shares of major tech companies withdrew on Tuesday for the third straight session of trading . amid mounting concerns that some stocks seen as benefiting from the coronavirus epidemic have soared too quickly.
Despite their recent losses, stocks were still rising sharply during the year. buoyed by stay-at-home orders aimed at slowing the spread of the virus.
Its declines affected the high-tech Nasdaq Composite Index. which is down more than 4%. And he entered the correction zone. The S&P 500 is down 2.8% and the Dow Jones Industrial Average lost 2.3%.
Sima Shah, chief strategist at Principal Global Investors. has stated that they should start anticipating a rotation – the momentum behind the technology will fade. ”As the lockdowns loosen up and the potential for a vaccine to be produced. People are returning to a normal lifestyle and tech addiction begins to fade. After he was at the peak.
The shares of major technology companies between low and high
After six months of rise. The stocks are in the middle of their worst period since March. When the Coronavirus pandemic ravaged the economy and led to a strong sell-off.
Few investors, however. believe the recent defeat signals the end of the rally that has pushed the Nasdaq up 20% this year and the S&P 500 up 3.1%.
Apple alone fell $ 8.14, or -6.7%, to $ 112.82 on Tuesday. And the tech giant fell by -14% losing about $ 320 billion in market value during the past three sessions.
Even when she announced an event to launch a new line of products that propelled her to the rank of the most valuable company in the world.
Tuesday’s losses extended beyond the tech industry:
All 11 sectors of the S&P 500 index declined. Also, 26 of the 30 components of the Dow Jones Index are down.
Energy stocks took a hit as oil prices continued to decline amid fears of a collapse in demand amid an erratic economic recovery. Saudi Arabia announced its expectation to reduce demand over the weekend by lowering prices.
Brent crude, the global benchmark for oil, slid -5.3% to $ 39.78 a barrel, dropping below $ 40 for the first time since June. US crude fell -7.6%.
Among the worst performers on the S&P 500, Apache, down 11%, or $ 1.56, to $ 13.04, and Devon Energy, down-8.9%, or $ 0.93, at $ 9,62.
Tesla, one of the best companies of the year. also saw its worst day, dropping -21% or $ 88.11, to $ 330.21. On Friday night. the S&P Dow Jones indices were transferred to the electric car maker for listing on the S&P 500. Which many investors bet it will give the stocks another boost. Its shares fell -34% in September but nearly quadrupled in 2020.
With traders returning from the weekend that usually marks the end of the summer holiday season. They said the economy and the US elections would be the focus. In addition to the continuing epidemic.
Some investors have sought safety in government bonds. It cut the yield on the standard 10-year Treasury note to 0.682% from 0.720% on Friday.
The impact of escalating economic tensions between the United States and China on the markets.
President Trump said at a news conference on Monday that he is considering a “separation” from China and is not looking to bring foreign jobs back to the United States. These comments are the latest development in a multi-year conflict between the world’s two largest economies focused on technology. security and jobs.
“Separation is an economic concept. not a political one,” said Sebastian Galle, macro strategist at Nordea Asset Management. “These are likely to be very important movements.”
On Tuesday, Chinese Foreign Minister Wang Yi unveiled an initiative to set global standards for data security. In response to Washington’s accusations of what the Trump administration considers national security threats by Chinese companies. Like Huawei Technologies and Tencent Holdings.
The Shanghai Composite is up 0.7%, while other major indices in Asia are also higher.
In Europe, the continental Stoxx Europe 600 index is down 1.1% – as another round of Brexit trade talks between the UK and the European Union is expected to start on Tuesday. Prime Minister Boris Johnson set a deadline of October 15 to reach an agreement and tensions are expected to subside in recent weeks before the deadline.
Against the downside, GM shares jumped + 7.93%, swinging between $ 2.38, or 7.9%, to $ 32.38 after forming a strategic partnership with battery and vehicle maker Nikola Hydrogen to jointly develop an electric truck. Nikola shares jumped $ 14.50, or 41%, to $ 50.05.
Among other individual stock moves, Boeing BA-5.83 fell $ 9.97, or 5.8%, to $ 161.08 after the Wall Street Journal reported that federal safety regulators were examining production of the 787 Dreamliner.
Fitness company Peloton Interactive PTON rose 6.16% to $ 4.97, or 6.2%, to $ 85.60 after unveiling new bikes and lower prices, in an effort to tap into more home workouts.