Wall Street tumbles again as the tech sector takes hit

September 24, 2020 - 1 month ago
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Wall Street racked up more losses on Wednesday as all three major U.S. stock indexes closed lower, adding to September’s struggles after sliding in the final hour of trade, wiping out the market’s gains from the day before.

The market has been whiplashed by several shifts in momentum recently, as investors fretted over uncertainty around the coronavirus pandemic and further stimulus.

Earlier this week, the U.K. said it would impose stricter measures to curb the coronavirus outbreak.

President Donald Trump said the U.S. would not be implementing the second round of lockdowns.

“The U.K. just shut down again. They just announced that they’re going to do a shutdown, and we’re not going to be doing that,” Trump said.

U.S. Federal Reserve Chairman Jerome Powell told a congressional panel Wednesday that further fiscal stimulus is still needed for the U.S. economic recovery to continue.

At the finishing bell, on the New York Stock Exchange (NYSE), the Standard & Poor’s 500 Index fell -78.65 points, or -2.37%, ending at 3,236.92.

The losses took the S&P 500 within a whisker of a correction, defined as a 10% pullback from a recent peak.

The Dow Jones Industrial Average tumbled -525.05 points, or -1.92%, to close at 26,763.13.

The rich-tech Nasdaq Composite lost -330.65 points, or -3.02%, finishing at 10,632.99.

Shares of Amazon, Apple and Netflix, were all down by more than -4% to lead lower the group of tech stocks known as “FAANGM.”

Facebook slid -2.3%, Alphabet dipped -3.5%, and Microsoft pulled back by -3.3%.

Those declines added to already steep FAANGM losses for the month.

Shares of Tesla fell -10.3% after Elon Musk offered new delivery predictions for 2020 and detailed a new battery design that he claims will make Tesla’s cars cheaper to produce.

The stock was also under pressure after Tesla sued the U.S. government to overturn tariffs on China.

The S&P 500 and Dow are down -7.5% and -5.9%, respectively, for the month, while the Nasdaq has dropped -9.7% over that time period.

Shares of Facebook, Amazon, Apple, Netflix, Alphabet and Microsoft are all down at least -11% in September.

Elsewhere, Johnson & Johnson on Wednesday announced the start of a 60,000-person clinical trial of its single-dose COVID-19 vaccine on three continents, making the drugmaker the fourth experimental vaccine candidate to enter final-stage testing in the U.S.

Nike shares jumped 8.8% after the company said digital sales surged more than 80% last quarter. Earnings and sales blew past analysts’ expectations last quarter and the company gave a forecast for growth in the new fiscal year.

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