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The Dow Jones ended up falling 2.78% to 28,292.73 points, after reaching the highs of February 20 yesterday. The fall of the Dow today was 807.77 points.
For its part, the Standard & Poor’s 500 fell 3.51% to 3,455.06 points, having sunk more than 4%. On Wednesday he had set a new all-time high, at 3,588.11 points.
After posting the biggest daily gain of the last two months yesterday, rising 1.54%, in today’s session the S&P marked the steepest decline since early June.
The Nasdaq Tech Composite also closed lower, shedding 4.96% to 11,458.10 points, having fallen close to 6% in the late afternoon. Yesterday I had reached the 12,000 point level for the first time and I set a new high, at 12,074.07 points.
Today was the largest drop for the index since March 16, when it plunged 12.32%, the steepest daily drop in history. In that black session, the Dow fell 12.94% and the S&P 500 fell 11.98%.
The Nasdaq Composite today returned 598.34 points (slipping close to 700 points), the fourth-largest drop in points.
The Nasdaq 100 was already sinking more than 5% during the session, the biggest daily drop since March.
The Wall Street lobbyists were primarily techies, namely Apple, Microsoft, Amazon, and Facebook.
Tesla, which is also listed on the Nasdaq, sank 9.02% to $ 407, with a market capitalization of $ 379.25 billion.
In three days, the electric vehicle maker led by Elon Musk lost nearly $ 86 billion in market value, which is practically the value of Volkswagen, the third-largest automaker by market capitalization.
Investors have been pouring less money into technology, wondering about the sustainability of the sector’s strong appreciation of stocks, says Bloomberg.
The Nasdaq Composite was, therefore, the most punished index this Thursday, but it has also been registering the best performance in recent times – and in the accumulated result of the year it still gains close to 30%, surpassing, by far, the Dow. and the S&P 500.
Also compelling was the fact that many investors are making capital gains.
“Although there is no single driver for the current weakness, it seems investors suddenly realized that stocks were overbought [demasiado valorizadas] and I started selling them. Someone yelled ‘fire’ in a crowded theater and they all ran at the same time, “LPL Financial chief strategist Ryan Detrick told CNN Business.
But there are also technical reasons for the stock market crash this Thursday, CNN adds: At a time when US-China relations are deteriorating, investors prefer to withdraw their money from technology, which may hit the hardest. for possible increases in customs duties
“Nasdaq is being hit hard by the transition to cyclical bonds and the prospect of big tech eventually paying the cost of further deterioration in US-China relations,” Oanda market analyst Ed told CNN Moya. .
Cyclical bonds tend to perform better as the economy recovers, now being one of the big bets. Among these values are financial, industrial and energy, which always benefit from the expectation of an economic recovery.
“From time to time, cyclical bonds, which tend to be the hardest hit in the market, outperform. They are not as safe a bet as technologies, but they are extremely attractive from the point of view of their evaluation and also from the point of view. In view of the recovery, they are the ones with the most profit to recover, “Inverness Cousel chief strategist Tim Ghriskey recently told Reuters.
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