Nasdaq sinks 10% in 3 days as tech’s sudden sell-off continues

NEW YORK — Big technology stocks tumbled again on Tuesday, continuing the Icarus-like flight path for companies that just a week ago were the high-flyers carrying Wall Street to record heights.

The S&P 500 fell 2.8% and clinched its first three-day losing streak in nearly three months. Big names that were the main reasons for the market’s rocket ride back from its pandemic-caused losses were among the heaviest weights. Apple sank 6.7%, Microsoft pulled 5.4% lower and tech stocks across the index were down 4.6%.

The Nasdaq, which is packed with tech stocks dropped 4.1% and is down 10% since it set its latest record on Wednesday.

Tech stocks had been the darlings of Wall Street on expectations that they can continue to deliver strong profit growth almost regardless of the economy and global health. Tech stocks in the S&P 500 are still up nearly 23% for 2020 so far, though unemployment remains high.

Analysts say a flurry of activity for stock options of Big Tech companies goosed the gains even further recently. With certain kinds of options, investors can make huge profits on a stock, without having to pay for its full share price, as long as the stock’s price keeps rising. If enough of these kinds of stock options are getting sold, it can create a buying frenzy for the stock that accelerates the gains even more.

But all that activity can unwind quickly if momentum turns, which is what happened last week. Apple stock has lost 14.1% over the last three days.

Boeing finds new problem with 787 that will delay deliveries

Boeing has recorded its first orders of the year for the grounded 737 Max, but a new flaw has surfaced in another of its planes.

Boeing said Tuesday it is inspecting part of the tail of the two-aisle 787 after finding that pieces were clamped together too tightly, which could lead to premature fatigue of a part called the horizontal stabilizer.

The company said it believes the problem affects 893 of the nearly 1,000 787s that have been built. Boeing expects the inspections of recently finished planes to affect the timing of 787 deliveries in the near term, spokesman Peter Pedraza said in a statement.