Apple and Alphabet dramatically fell on Tuesday. Apple eased more than 12% between last week’s Tuesday high and Friday’s close, while Alphabet dropped more than 8% in the same period.
Tesla also eased more than 14% in the morning. The company was snubbed by the S&P 500 after many ventures expected the company to be added to the index. General Motors lost 11%, while Nikola, which makes electronic trucks, boosted more than 37%. Japan’s Softbank is likely to face the most pain from this apparent correction. The conglomerate bought millions of dollars valued options in stocks it already had. However, when the market turned, the losses started pouring in. Roughly $10 billion of Softbank’s value has been wiped out.
U.S. Treasury bond yields declined to 0.68% on the 10-year note as bond prices climbed. The U.S. dollar, meanwhile, increased higher, in turn putting pressure on the value of gold. Oil prices also dropped.
The Dow Jones Industrial Average and Nasdaq fell
On Tuesday, September 8, the tech-heavy Nasdaq Composite instantaneously declined. Tuesday, indeed, is another rough day on Wall Street.
Several factors promote investors for risky bets: worries about increasing Covid-19 infections and the knock-on effects of the economic rally surrounding the November presidential election, and US-China tensions.
The U.S. President Donal Trump reported on September 7 that he was not “happy at all” with China and talked about an economic decoupling.
The S&P 500, the best stock’s performance measure, decreased by 2.1%, while the Nasdaq fell 2.9% at midday. The DJIA (Dow Jones Industrial Average) lost 1.8% or 500 points.
As reported by the analysts, Septemeber can be a correction month for tech stocks. Besides, analysts at Oxford Economics noted that the U.S. equity volatility in last days is a reversal of the market excesses.