Dow drops 600 points as tech stocks fall again, Nasdaq down 10% in 3 days
Stocks fell sharply on Tuesday as another massive drop in tech put the Nasdaq Composite in correction territory and led to the S&P 500′s worst three-day stretch in months.
The Nasdaq Composite dropped 4.1% to end the day at 10,847.69. Tuesday’s drop put the tech-heavy Nasdaq down 10% over the past three days. It marks the Nasdaq’s worst three-day stretch since August.
The Dow Jones Industrial Average plunged 632.42 points, or 2.3%, to 27,500.89. The S&P 500 slid 2.8% to 3,331.84. The broader-market index was down nearly 7% over the past three days, its worst three-day stretch since June.
Tesla plunged 21.1% — its biggest one-day drop on record — after the S&P Dow Jones Indices failed to add the surging and speculative stock to the S&P 500 after the bell Friday. Investors were betting on inclusion of the stock into the S&P 500, hoping for the stamp of approval on the rally by S&P. The snub shows the risks to the overheating Nasdaq trade.
Apple dropped 6.7% to lead tech lower. Over the past three sessions, the Dow component has plunged more than 14%. According to Bespoke Investment Group, that’s the stock’s worst three-day stretch since October 2008.
Facebook and Amazon were both down more than 4%. Microsoft fell 6.7%. Netflix closed 1.8% lower and Alphabet lost 3.6%. Zoom Video fell by 5.1%. The S&P 500 tech sector dropped 4.6% and closed Tuesday’s session more than 11% below an all-time high set on Sept. 2.
· Stock futures fall with market set to continue technology-led sell-off
U.S. stock futures moved lower in overnight trading and pointed to losses at the open on Wednesday, as the technology-led stock rout continues to pressure financial markets.
Dow futures dropped 150 points. S&P 500 and Nasdaq 100 futures fell 0.5% and 0.35%, respectively.
Disappointing coronavirus vaccine news also pressured the futures market on Tuesday. AstraZeneca shares plunged in extended trading after the company said a late-stage trial of its Covid-19 vaccine candidate has been put on hold due to a suspected serious adverse reaction in a participant in the U.K.
· AstraZeneca shares drop 6% after company announces ‘routine’ safety pause in coronavirus vaccine trial
AstraZeneca shares fell more than 6% in after-hours trading Tuesday after the company said its late-stage trial for a potential coronavirus vaccine had been put on hold due to safety concerns.
“This is a routine action which has to happen whenever there is a potentially unexplained illness in one of the trials, while it is investigated, ensuring we maintain the integrity of the trials. In large trials illnesses will happen by chance but must be independently reviewed to check this carefully,” the company said in a statement to CNBC.
It said it was trying to expedite the review to “minimize any potential impact on the trial timeline.”
Reference: CNBC
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