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There were sharp falls on Wall Street on Wednesday. The broad S&P 500 fell 3.52 percent to 3,454.92 points, while the Dow Jones closed 2.78 percent lower at 28,292.73 points. The high-tech Nasdaq fell 4.96 percent to 11,458.10 points.
“Although there was no trigger, there was probably some nervousness and several position changes leading up to the weekend. Given the good recovery, it can even be described as earnings hedge,” says Sameer Samana, strategist at Well Fargo.
Thursday’s big stock market crash also leads to a recession in Asian stock markets. Similar to the US, where Apple, Amazon, Facebook, Tesla, Alphabet, and Netflix were defeated, tech stocks are burning in Asia as well. America’s tech giants have so far had an adventurous development since the crown crisis began.
“At some point, you’ll see someone make a profit and switch positions in their portfolios. It’s hard to know what the last straw was for investors, but the sales shouldn’t come as a big surprise. It was pretty clear that parts of the market were over expected, “says Adam Phillips, director of portfolio strategy at EP Wealth Advisors.
From Friday morning’s pre-trade, the Nasdaq is down 1 percent, while the Dow Jones is down 0.23 percent. S&P 500 futures were down 0.38 percent.
Julian Emanuel of the BTIG company says he is quite bullish on bank stocks, which on average globally have fallen about 18 percent in 2020, according to Bloomberg.
“If you have too much technology in your portfolio, it is time to sell some of the winners and change a little. We believe that the Fed will change the game and the finances, causing the market to go higher in 2021,” says Emanuel.
