May 19, 2021

Business Information

Stocks Go Straight Down in Tech-Led Selloff

3 min read
Stocks fell on Friday to end a volatile week as investors continued to dump shares...

Stocks fell on Friday to end a volatile week as investors continued to dump shares of high-flying tech companies.

The Dow Jones Industrial Average plummeted 244.56 points to 27,657.42.

The S&P 500 dipped 37.54 points, or 1.1{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266}, to 3,310.47.

The NASDAQ ditched 117 points, or 1.1{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266}, to 10,793.28.

The major averages fell for a third straight week, notching their longest weekly losing streaks since last year. The Dow posted a slight week-to-date loss. The S&P 500 lost 0.7{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266} and the NASDAQ dropped 0.6{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266} over that time period.

Shares of Apple dropped more than 3{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266} on Friday. Microsoft dropped 1.2{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266}, and Alphabet pulled back 2.4{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266}. Netflix dipped 0.1{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266}. Facebook fell 0.9{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266}.

Big Tech was also down broadly week to date. Facebook and Amazon have each dropped more than 5{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266} this week. Alphabet, Netflix, Apple and Microsoft are also down sharply over that time period.

For the month, all six stocks are down at least 10{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266}. Apple, specifically, has plunged 17.2{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266} in September. From their peak, Apple shares have fallen 22.6{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266}; the company has also given up $500 billion in market value.

Tensions between China and the U.S. also dampened market sentiment after the U.S. government said it will block all TikTok and WeChat downloads in the country on Sunday. Oracle, which is trying to take a minority stake in TikTok-parent ByteDance, fell 0.7{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266}.

Republicans and Democrats are still struggling to agree on how much aid to continue to provide in a follow-up bill to the previous $2-trillion package. President Donald Trump said Wednesday he liked “the larger numbers,” urging GOP lawmakers to go for a bigger coronavirus stimulus, but his comments left Republicans skeptical.

Meanwhile, the path to a COVID-19 vaccine, which is critical to the economic recovery, still seems unclear. Health officials said vaccinations would be in limited quantities this year and not widely distributed for six to nine months.

Still, the major averages were set to snap two-week losing streaks despite the uncertainties surrounding the market and economic outlook.

Both the S&P 500 and NASDAQ were up about 0.5{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266} week to date heading into Friday’s session. The Dow was up 0.85{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266} for the week.

Prices for the 10-Year Treasury slumped, raising yields to 0.7{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266} from Thursday’s 0.69{b41070339980fe8c8adba3a33db88a5bfa250719b9b24ef983132946acbc5266}. Treasury prices and yields move in opposite directions.

Oil prices subtracted 12 cents to $40.85 U.S. a barrel.

Gold prices were better by eight dollars to $1,957.90 U.S. an ounce.

Source link