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In the market, they fear that the concentration of profits will be in few technological actions, which could generate a destabilization of the sector.
Week did not end in the best way for investors. The alert in the market is on the table after yesterday Thursday The Nasdaq will end the day with a fall of 5, which is offset by the positive employment data in the United States.
Market analysts explain that what happened yesterday was a correction of the technological indicator. The Investors would have gone out to take profits and reduced the momentum that had been injected into the papers of US giants such as Facebook, Amazon, Netflix, Alphabet and Microsoft.
With a drop not seen for weeks for Asia it was inevitable to close on Friday in negative territory. Hong Kong’s Hang Seng fell 1.25% and Tokyo’s Nikkei fell 1.11%. Mainland China’s CSI 300 sank 0.97%.
In Europe the situation was similar. The actions of the Old Continent succumbed despite having tried in the first hours of the day to get a rhythm. What happened yesterday after a sell-off of tech papers on Wall Street it scared the global markets.
Meanwhile, the data for industrial orders from Germany rose but doubts about its economic recovery pace came to the fore in July after its growth was limited in July to 2.8%, below the 5% expected.
The IBEX 35 in Madrid closed with losses of 0.23%, despite having started on the right foot due to the intentions of CaixaBank and Bankia to merge and thus become the largest bank in the Iberian country and relegating Santander to second place. The CAC 40 in Paris fell 0.89% and the FTSE 100 in London plunged 0.88%.
While the DAX in Frankfurt had a deeper fall of 1.65% and the Euro Stoxx 50 fell back 1.32%.
Wall Street also had a bitter day. For the second consecutive day, the three indicators closed with negative numbers. The Dow Jones sank 0.56%, the S&P 500 fell 0.81% and the Nasdaq fell 1.27%.
Shares of the main technology companies closed mostly lower. Facebook, Amazon and Alphabet lost more than 2%. Netflix fell 1.8% and Microsoft fell 1.4%.
The exception was Apple which ended the day with a rise of 0.1% after falling to 8.3%. Tesla also erased a slump above 8%, closing the session 2.8% higher.
On CNBC they point out that since March 23, S&P 500 technology sector is up approximately 70%. During the year, technology companies have recovered more than 30%.
However, some market players have raised concerns about the strong concentration of earnings in just a few stocks, as it could make the broader market susceptible to a pullback if these names were ever in trouble.
Local plan
The S&P IPSA was no exception. The Chilean stock market fell 0.92%, reaching 3,810 points. Retail was one of the big losers of the session. Falabella’s shares fell 0.75% and Cencosud’s shares fell 1.78%.
Another of the penalized papers was Copec with a fall of 1.38% and CMPC with 2.12%.
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