The market sell-off accelerated following a report from the Financial Times saying that Japanese investing giant SoftBank (SFTBF) had made a massive bet on risky derivatives tied to big tech stocks, amounting to billions of dollars that could have fueled the Nasdaq rally.
Investors were selling even though the US economy added 1.4 million jobs in August, which was in line with expectations and down from 1.7 million jobs added in July and 4.8 million in June. Every person who can go back to work is a win for the recovery from the coronavirus-fueled joblessness crisis, but America is still down 11.5 million jobs from February.
Tesla (TSLA), which has been one of the market's biggest winners in 2020, continued to fall sharply too since splitting its stock earlier this week to lower its share price. Shares were down 6% and are off nearly 25% from their all-time high.
Friday's failed attempt at a market rebound follows Thursday's massive drop for stocks, which was led by big sell-offs in red hot tech leaders such as Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT).
The Dow slid more than 800 points Thursday, in what was the worst day for stocks since June. That pullback came just one day after the S&P 500 and Nasdaq both hit new all-time highs and is a sign that market volatility may be back.
It also appears that investors have decided to rotate out of riskier tech stocks, which have helped lead the broader market higher for the past few years, and into more cyclical companies.
To that end, financial giants American Express (AXP), JPMorgan Chase (JPM) and Travelers (TRV) were Dow leaders Friday. So were big dividend payers Verizon (VZ) and Coca-Cola (KO) as well as new Dow components Honeywell (HON) and Amgen (AMGN).
Software company Salesforce (CRM), another new Dow member, was the biggest loser Friday, plunging 8%.
"stock" - Google News
September 04, 2020 at 10:25PM
https://ift.tt/2Z9SPLc
Stocks fall again as the tech wreck continues - CNN
"stock" - Google News
https://ift.tt/37YwtPr
https://ift.tt/3b37xGF
Bagikan Berita Ini
0 Response to "Stocks fall again as the tech wreck continues - CNN"
Post a Comment