Tech stocks take cen­tre stage in mar­ket sell-off

Financial Mirror (Cyprus) - - MARKETS -

The U.S. stock mar­ket took a mas­sive plunge on Wed­nes­day, with the Dow Jones In­dus­trial Av­er­age (-3.15%), the S&P 500 (3.29%) and the Nas­daq Com­pos­ite In­dex (4.1%) all see­ing sig­nif­i­cant de­clines. For the lat­ter, it was the worst day since the Brexit vote wreaked havoc on in­ter­na­tional mar­kets in June 2016, only this time it was fu­eled by in­vestors’ fears of ris­ing in­ter­est rates. In the af­ter­math of the fi­nan­cial cri­sis, his­tor­i­cally low bor­row­ing rates had fu­eled a long bull mar­ket run that may now be com­ing to an end.

Tech stocks were no ex­cep­tion in Wed­nes­day’s sell-off. In fact, they took cen­ter stage as the fa­mous FAANG com­pa­nies all suf­fered big­ger de­clines than the mar­ket over­all. As our chart il­lus­trates, the mar­ket cap­i­tal­iza­tion of six of the most cov­eted U.S. tech com­pa­nies col­lec­tively dropped by more than $220 bln, dwarf­ing the losses in­curred in the “flash crash” in Fe­bru­ary this year.

Af­ter Wed­nes­day’s rout, Wall Street braced for an­other down day on Thurs­day, con­tin­u­ing what is al­ready the worst start to a quar­ter in about two years. (Source: Statista)

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