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- US stocks sank on Tuesday as investors sold-off tech giants and bought safe-haven assets.
- The tech-heavy Nasdaq composite index dropped more than 4%, extending its loss to 11% in the period since Sept. 2.
- Tech giants including Apple, Microsoft, and Facebook led the decline, while Treasurys and the dollar gained.
- Investors also mulled President Trump’s plan to end US’s reliance on Chinese exports. The statement threatens to reignite the US-China trade war after weeks of relative calm.
- Oil futures dropped below $40 a barrel on fresh warnings of demand weakness. West Texas Intermediate crude sank as much as 9.2%, to $36.13 per barrel.
- Watch major indexes update live here.
US equities tumbled on Tuesday as investors continued to dump highly valued tech giants. The tech-heavy Nasdaq composite index dropped more than 4%, extending its loss to 11% in the period since Sept. 2.
Apple, Microsoft, and Facebook slumped along with top work-from-home plays including Zoom Video and Docusign. Tech stocks led the market slide, while utilities and health care names were the most insulated.
Treasurys and the US dollar gained as traders shifted cash to safe havens.
The drop mimics Thursday’s session, when a wave of tech-focused selling led to stocks’ worst day since June. Equities staged a mild comeback in Friday trading but still closed with small losses.
Here’s where US indexes stood at the 4 p.m. ET market close on Tuesday:
- S&P 500: 3,331.84, down 2.8%
- Dow Jones industrial average: 27,500.89, down 2.3% (632 points)
- Nasdaq composite: 10,847.69, down 4.1%
Read more: 4 experts break down the drivers behind the sudden plunge in tech stocks that’s dragging the entire market lower – and share their best recommendations for what investors should do as the election approaches
Guggenheim Securities’ Jim Millstein warned “a period of significant volatility” is set to stick and last through the election season.
“Fasten your seatbelt, it’s going to be a bumpy ride,” he said in a Tuesday appearance on Bloomberg TV.
Tesla slid after the firm was excluded from the S&P 500’s latest portfolio rebalancing. The company met the criteria necessary for joining the benchmark, but S&P Dow Jones Indices instead added Etsy, Teradyne, and Catalent to the index.
Elon Musk’s firm tumbled further after General Motors announced a stake in rival electric-vehicle manufacturer Nikola Motors. Nikola surged on news of the deal.
Disney gained after Deutsche Bank upgraded shares to “buy” from “hold.” The bank’s analysts said Disney succeeded in launching its streaming service and is on its way to becoming a global leader in the lucrative sector.
Read more: A strategist at the world’s largest wealth manager lays out 4 election-related risks that could damage investors’ portfolios – and shares how to safeguard against each one now, regardless of who wins
Peloton jumped close to record highs after cutting the price of its original exercise bike and introducing two new products. The stock is up more than 200% year-to-date on surging demand for home exercise hardware.
Investors also mulled new threats to the fragile US-China trade relationship. President Donald Trump said Monday he plans to end the country’s reliance on China and its factories. Trump also threatened to punish companies that create jobs outside the US and prevent companies operating in China from winning government contracts.
“Investors are no longer pricing calm trade waters leading up to the election as Trump is not easing up the hard rhetoric even as stock market selloff continues,” Edward Moya, senior market analyst at OANDA, said in a note.
Read more: ‘Never been so extreme’: A renowned stock bear says today’s ‘hypervalued’ market implies the worst market returns in history – and expects a 66% crash from today’s levels
Spot gold fell as much as 1.4%, barely staying above the $1,900-per-ounce threshold, after failing to retake $2,000 at the start of the month.
Oil slid below $40 per barrel after industry giants continued to slash prices on demand weakness. West Texas Intermediate crude slipped as much as 9.2%, to $36.13 per barrel. Brent crude, oil’s international benchmark, dropped 6.4%, to $39.31 per barrel, at intraday lows. Both contracts hit their lowest levels since June.
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