The market fell sharply on Wednesday, adding to its sell-off so far in September as tech stocks again came under pressure and investors remained wary about a resurgence in coronavirus cases.
The Dow Jones Industrial Average was down 1.9%, nearly 550 points, on Wednesday, while the S&P 500 fell 2.4% and the tech-heavy Nasdaq Composite dropped 3.1%.
Shares of Big Tech stocks, which have been the source of the sell-off in recent weeks, again dragged the market lower: Apple, Amazon, Microsoft, Netflix and Google-parent Alphabet all fell by around 3% or more.
Tesla’s stock plunged over 9%, meanwhile, after the company’s highly anticipated ‘Battery Day’ in which CEO Elon Musk detailed a new battery design that he says will make Tesla’s cars cheaper to produce.
US stocks closed lower for a third straight day as technology shares slipped, capping off another choppy week on Wall Street that included some unsettling central bank meetings.
The S&P 500 fell 1.1 per cent, extending losses that first began on Wednesday following the Federal Reserve’s meeting on monetary policy. For the week, the benchmark index was down 0.7 per cent — its third week of declines. Meanwhile, the tech-heavy Nasdaq Composite closed down 1.1 per cent.
“Stocks remain technically overbought in the short term and vulnerable to a further correction,” said analysts at BCA Research. Investors should pivot into cheaper areas of the stock market, such as financials, non-US stocks and value stocks, they added.
Earlier this week the Fed chairman Jay Powell provided fresh details on the US central bank’s plan to allow for inflation to run above its 2 per cent target in order to make up