U.S Stocks close lower, as Facebook, Amazon, Google drop 2%
U.S Stocks closed lower at the last trading session for the week after a volatile session. These recent sell-offs were triggered by leading tech brands such as Facebook, Amazon, and Google, which lost more than 2%. Netflix’s stock price lost 1.8% and Microsoft also dropped 1.4%.
However, Apple’s stock price ended the trading session up by 0.1% after falling as much as 8.3%. Tesla’s share price also reversed a drop of more than 8%, ended the trading session up 2.8%.
The Dow Jones Industrial Average closed 159.42 points lower, or 0.6%, at 28,133.31 points. At one point, the 30-stock average fell as much as 628.05 points or 2.2%. The Dow was also higher for a moment yesterday.
The S&P 500 dropped 0.8% to 3,426.96 but finished well off its session low. The broader-market index plunged by 3.1% at its session low and briefly traded positive on the day. The Nasdaq Composite also dropped 1.3% to 11,313.13 but also closed well above its low of the day.
In an explanatory note to fabpulse Stephen Innes, Chief Global Market Strategist at AxiCorp spoke on the prevailing market conditions and the macros triggering the sell-offs. He said;
“This sell-off looks an awful lot like a retail meltdown, similar to what we see in China markets as a lot of weak retail longs getting taken to the cleaners by the aggressive short seller on the street in a vast momentum style clean out, but I think there is more than meets the eye.
“While I don’t think it’s a healthy meltdown, getting rid of some of the short-term speculator froth will offer up better levels for the Wall of Money to indulge as we know the Fed is going anywhere soon, although probably holding back the big guns for a possible rainy day in the future if the winter months prove to be explosive for the virus.”
However, there appears to be no particular driver of the recent sell-offs recorded in the world’s largest equity markets other than a reversal of the substantial gains seen over the past two weeks on the surface.