STOCKS TAKE BIG­GEST FALL SINCE EARLY JUNE

Chicago Sun-Times - - BUSINESS - BY KEN SWEET AND DAMIAN TROISE AP Busi­ness Writ­ers

NEW YORK — Wall Street’s eu­pho­ria took a break Thurs­day, as steep losses in tech­nol­ogy stocks dragged the rest of the mar­ket down with them.

The S&P 500 fell 125.78 points, or 3.5%, the big­gest de­cline for stocks since early June. The Dow Jones In­dus­trial Av­er­age fell 807.77 points, or 2.8%, to 28,292.73. There seemed to be no ex­plicit cat­a­lyst for the sell-off, with eco­nomic data com­ing in roughly where the mar­ket had ex­pected and no com­pa­nies is­su­ing fore­bod­ing warn­ings.

That said, the mar­ket felt due for a breather, in­vestors said. Both the S&P 500 and Nas­daq hit record highs just the day be­fore. Prior to Thurs­day, the S&P 500 had risen nine out of the pre­vi­ous 10 days.

Ap­ple dropped 8%, Ama­zon lost 4.6% and Face­book gave back 3.8%. The Big Tech stocks have made mas­sive gains this year. Mar­ket watch­ers have been ques­tion­ing re­cently whether those gains were over­done. Ap­ple is still up 64.7% for the year, and Ama­zon is up 82.3%. Zoom’s gain for the year is still a whop­ping 460.4%.

“There’s re­ally very lit­tle to jus­tify [these stocks’ up­ward move] other than eu­pho­ria,” said Mark Hack­ett, chief of in­vest­ment re­search at Na­tion­wide.

Hack­ett also said the mar­ket has “em­bed­ded very op­ti­mistic as­sump­tions” about the virus’ im­pact on the econ­omy, as well as on prospects for Wash­ing­ton com­ing up with another eco­nomic re­lief pack­age.

Semi­con­duc­tor stocks also fell sharply, though even with Thurs­day’s 9.3% drop, Nvidia is still the big­gest gainer in the S&P 500 this year.

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