Bloomberg News
@Bloomberg-News·2.8M subscribers·40.1K videos
Technology Stocks Tumble at NYSE Closing Bell
Posted
September 8, 2020
Views
548
Likes
2
Engagement
0.36%
September 8, 2020
548
2
0.36%
Every word spoken in this episode is indexed. Type any phrase to jump straight to the moment it was said.
Type any word or phrase that may have been spoken. Click a result to seek the player to that exact moment.
Try a name, a topic, or a quoted line
You’re on September 8, 2020. Earlier episodes are to the left, later ones to the right — the row keeps loading as you go. Click any card to open it.
Sep 8, 20200:50Now PlayingU.S. stocks sank for a third day, with a selloff in technology shares picking up steam as investors fled the high flyers who fueled a historic five-month rally. Oil plunged, while Treasuries rose with the dollar.
Volatility roiled financial markets, sending the Nasdaq 100 down 4.8% and leaving it 11% off its record set last Wednesday. Tesla suffered the worst rout in its history and is now down 34% in September. Apple’s 6.9% plunge wiped out almost $140 billion in market value Tuesday, while its three-day slide swelled to 14%, the most since October 2008.
Investors have been spooked by the last leg of a rally that drove valuations to levels last seen in the dot-com era. Few pockets of the market were spared, with 450 S&P 500 members lower and only five Nasdaq 100 components higher. The broader index hit the lowest since Aug. 11. West Texas Intermediate crude plunged almost 8% in New York.
The speculative fever that drove huge bullish bets in options markets and saw shares in bankrupt companies surge has broken in September, wiping out trillions in market value. The hardest-hit sectors remain sharply higher for the year, stoking debate among strategists over whether the latest pullback is a sign of market health or the start of a larger drawdown that has further to go.
“Some froth has come off the market which is a good thing, but keep in mind that we still remain well over levels that could be considered ‘fair value’ in stocks,” Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter, wrote in a note. “And while the outlook for stocks remains generally constructive long term, there’s a lot more downside in this market if we get any major disappointments.”
For now, traders sought the safety of haven assets, pushing Treasury yields lower and strengthening the dollar. Gold declined.
The U.S. and China relationship is also back in focus after President Donald Trump said he plans to end America’s reliance on the country. Trump also threatened to punish any American companies that create jobs overseas and to forbid those that do business in China from winning federal contracts.
“The path of least resistance for the market may well be to test the downside,” said Peter Chatwell, head of a multi-asset strategy at Mizuho International Plc. “Ultimately, if there is more selloff, I suspect real money investors will take the opportunity to buy the dip.”
Subscribe to our YouTube channel
QUICKTAKE ON SOCIAL:
Follow QuickTake on Twitter: twitter.com/quicktake
Like QuickTake on Facebook: facebook.com/quicktake
Follow QuickTake on Instagram: instagram.com/quicktake
Subscribe to our newsletter
Email us at quicktakenews@gmail.com
QuickTake by Bloomberg is a global news network delivering up-to-the-minute analysis on the biggest news, trends and ideas for a new generation of leaders.
Sentinel Indexing in Progress
Metadata and chapters are available. Claim extraction for this episode is pending.
All video content is delivered via YouTube embedded players in accordance with the YouTube Terms of Service. Sentinel provides research tools that promote discovery and accountability across political media.
