TECH STOCKS TAKE A BEATING IN NEW YORK; NASDAQ DOWN 8%
Big tech stocks are continuing their Icarus-like flight path, and more sharp declines for them are dragging Wall Street toward a third straight loss on Tuesday, Stan Choe wrote for the Associated Press (AP).
The S&P 500 was down 1.8% in late morning trading, after sinking as much as 2.5% shortly after trading began. Big names that had been the main reasons for Wall Street’s rocket ride back to record heights were among the heaviest weights. Apple sank 3.3%, Microsoft pulled 2.8% lower and tech stocks across the index were down 2.2%.
The Dow Jones Industrial Average was down 478 points, or 1.7%, at 27,654, as of 10:57 a.m. Eastern time. The Nasdaq composite, which is full of many tech stocks, dropped 2.3% and is down 8.3% since Wednesday’s close.
Tech stocks had been the darlings of Wall Street, even through the pandemic, on expectations that they can continue to deliver strong profit growth almost regardless of the economy and global health. Tech stocks in the S&P 500 are still up 25% for 2020 so far, and Amazon has rocketed 74%, even when unemployment remains high and much of the economy is limping ahead.
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