© Reuters. By Yasin Ebrahim
Investing.com – The Nasdaq suffered its worst day in almost a month on Thursday when a red sea swept away mega-cap tech stocks and a jump in jobless claims renewed concerns about the pace of recovery as the relentless continues spread of the virus. .
He fell 2.29% and lost 1.23%, while 1.31% fell.
Mega-cap technology, which has done most of the heavy lifting to support the market recovery since March, came under pressure as concerns about foamy valuations resurfaced.
Apple (NASDAQ :), Alphabet (NASDAQ :), Amazon.com (NASDAQ :), Facebook Inc (NASDAQ 🙂 and Microsoft (NASDAQ :), the so-called Fab 5, which accounts for about 40% of the Nasdaq, fell more than 3%.
Apple led the sale after Goldman urged investors to avoid the action, citing expectations of a slowdown in growth in 2021. “We continue to forecast earnings per share on the 2021 calendar for Apple, which is 16% below the consensus as it goes. that product unit sales and average sales prices fail and service growth slows, “said Goldman Sachs (NYSE :).
Microsoft finished 4% after its guidance failed to meet consensus estimates, and eclipsed better-than-expected quarterly results.
Tesla (NASDAQ :), meanwhile, reversed earnings to finish lower despite windfall earnings for the second quarter and retain initial guidance to deliver more than 500,000 vehicles for the year.
Twitter dodged the sale to end at 4%, as the social media company reported a 34% jump in daily active users. Its shares closed 4% higher.
Investor sentiment was further soured by signs of cracks in the labor market.
The United States Department of Labor reported that 1.4 million people applied for unemployment insurance for the week ending July 18, 109,000 more than the previous week and above economists’ estimates of 1.3 million.
“The increase in Covid cases in the Sun Belt and the delay in reopening activities in other states have apparently sparked another round of layoffs that has hampered the incipient recovery in the labor market,” Jefferies (NYSE 🙂 said in a note.
The number of confirmed cases of coronavirus in the US approached 4 million, according to Johns Hopkins data, the most in the world.
Despite growing doubts about the possibility of a solid recovery, performance-related stocks proved to be more resilient. Financial, energy and industrial companies ended the day with losses of less than 1%.
Fusion media or anyone involved with Fusion Media will accept no responsibility for loss or damage as a result of reliance on information, including data, quotes, charts and buy / sell signals contained on this website. Having full information about the risks and costs associated with trading the financial markets is one of the riskiest forms of investment possible.
