Wall Street tumbles as investors dump tech stocks
Wall Street’s main indexes closed sharply lower on Thursday (US time), marking their deepest one-day dives in months as investors dumped the high-flying technology sector, while economic data highlighted concerns about a long and difficult recovery.
The technology-centric Nasdaq led the declines as its heavyweight stocks took a hit with the biggest drags from companies including Facebook, Apple, Amazon.com, Microsoft and Google-parent Alphabet.
The five stocks, deemed strong bets because of solid cash positions and continued growth despite the coronavirus crisis, also account for roughly a quarter of the S&P 500’s market value and have driven the stock market’s narrow technology-led recovery from the pandemic lows hit in March.
Unofficially, the Dow Jones fell 2.8 per cent, the S&P 500 lost 3.52 per cent, and the Nasdaq Composite dropped 5 per cent. It sets up the ASX for heavy losses, with futures at 6.16am AEST pointing to a drop of 119 points, or 2 per cent, at the open.