Stocks dipped on Thursday, as Wall Street gave back gains after capping off yet another record-setting session a day earlier.
Stocks choppily decreased on Thursday. The DJIA (Dow Jones Industrial Average) has dipped by 2.78%, eased more than 800 points to 28,292.73. That was the first time The Dow Jones Industrial Average was less than 29,000 since February. The S&P 500 slumped 3.5% for its biggest one-day loss since June and reached 3,455.03. The Nasdaq dipped 4.96% or 598.34 points and hit 11,458.10.
Big Tech Shares edged lower
Significant tech shares such as Amazon, Apple, Microsoft, and Facebook, Tesla, Zoom each edged lower. Facebook lost 3.8%, Tesla dipped 9%, Zoom shares also eased 10%, bringing their two-day losses to 20%. Apple Inc. slumped 8%, its August stock split mitigated that drop. This decline was particularly dramatic for Apple as it lost $1,792.92 billion in market cap and that the most massive one-day loss in the company’s history. The fall was larger than the individual market cap of 470 of the 500 companies in the S&P 500.
“Big Tech stocks have witnessed some of the biggest froth in terms of valuation expansion”, – said David Lefkowitz, Head of America’s equities at UBS Global Wealth Management. He added that It is not surprising we see the most critical parts of the market hit the hardest. It’s the mirror image of the situation over the last few weeks.
While the shares of giant companies were declining, other companies were hit in the selloff. For example, Nvidia Corporation, which created interactive graphics on laptops and mobile devices, decreased by 9,3%. Carnival Corporation gained 5,2%, United Airlines Holding increased by 1,4%, while Lauren Corp. boosted 3.6%.
Head of the equity strategy at Saxo Bank, Peter Garnry, said: “Individual investors have driven U.S. shares options trading, if shares in a stock shrink enough, market makers will unwind their stocks, causing a brisk selloff.”