US stocks extend drop on valuation risks

US equities retreated, extending declines from last week’s all-time high, as investors reassessed valuations in light of global economic risks including a resurgent pandemic and a regulatory crackdown in China.

The S&P 500 was falling for a third day since it closed at a record on Sept. 2. Declines in megacap technology stocks including Apple Inc. and Facebook Inc. were weighing heavily on the Nasdaq 100. Europe’s Stoxx 600 gauge was headed for its biggest drop in almost three weeks. Cryptocurrency-exposed stocks declined as a sell-off in Bitcoin continued.

Yesterday’s drop came as money managers from Morgan Stanley to Citigroup have turned cautious on US equities.