On Wednesday, for once in over two years, the Nasdaq Composite fell into correction territory (when a stock falls 10% or more after a recent increase). The Dow Jones Industrial Average dropped more than 0 points. The S&P 500 in addition to the blue-chip index erased all the gains they had made in 2018. however in an indication of the market’s volatility, in after-hours trading, tech stocks recovered some of their losses.
Wednesday’s declines follow another slump only two weeks ago, when the Dow Jones Industrial Average plunged 830 points in addition to the S&P 500 fell 2.1%.
The reason for all these slumps? In large part, the item’s because investors are selling off stocks in addition to revealing a faltering confidence, especially in internet in addition to technology companies. Such stocks typically draw investors for their reliable sales, even from the face of global economic tumult, in addition to have consistently led the “bull market” in recent years — a market of which investors look to for reliable, upward-moving trends.
in addition to yes, stocks have taken a beating This particular month. however the item can be the usually high-flying tech stocks of which are notably taking a tumble right now. Facebook, Amazon, Netflix, in addition to Alphabet (which owns Google) are all trading lower. Netflix fell nearly 10% in its share value. Facebook in addition to Alphabet dropped more than 5%, while Apple dipped 3.4%. The one exception was Tesla, whose shares actually jumped by more than 10% in after-hours trading after the company reported a surprise profit for the third quarter — $311.5 million — which can be the electric car maker’s highest-ever quarterly profit.
however elsewhere in Silicon Valley, the painful sell-off in tech can be an anomaly of which the region has not had much experience grappling with — in addition to right now the rest of the market can be suffering for the item.