Tech stocks were down big today, after news that the government is looking into anti-competitive behavior in big tech names like Facebook, Amazon, Google, and Apple.
Stocks opened the day lower and went on a roller coaster ride. During the day, the E-Mini S&P experienced 9 swings of 0.5% or more!
The final swing was a bounce off of session lows after St. Louis Fed President Bullard said that a rate cut may soon be considered to boost inflation, especially if we see slower economic growth because of trade.
But the reaction to a possible rate cut just put a small dent in today’s NASDAQ drop.
Facebook (FB) and Alphabet (GOOG) were hardest hit with losses of 7.5% and 6.1%. AMAZON (AMZN) suffered a 4.6% loss and Apple (AAPL) was down 1.0%. The sell-off in these companies represented a $130 billion loss in market value.
With today’s drop, the NASDAQ entered correction territory (dropping 10% from its high in April).
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Here’s where the major indices ended the day:
- The S&P finished with a 0.3% loss. Down 8 points, the S&P ended at 2,744.
- The DOW ended flat. Adding 5 points, the DOW closed at 24,820.
- The NASDAQ was down 1.7%. With a 125 point loss, the NASDAQ finished at 7,328
Crude Oil (CL) dropped for the fourth day in a row. Down 0.8%, CL ended at $53.06 a barrel. Crude Oil has lost more than 15% in the last 2 weeks.
Will stocks continue to slide? It’s not easy to say. It’s important to trade what you see, not what you think!
But here’s an interesting stat…
According to CNBC and Kensho, in the last 10 years, the S&P has bounced back 83% of the time after a 3-week loss. Since 2009, there have been 18 times that the S&P has experienced a 3-week slide. And a month after this slide, the S&P has experienced a 3.4% gain.
Beyond Meat (BYND) finally joined the rest of the market with a loss.
After an impressive 30.7% gain last week, BYND finished the day with a 7.7% loss.
This week the ongoing trade war will continue to be in the trader spotlight next week. We’ll also get the Jobs Report on Friday.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
Source: RockwellTrading by Markus Heitkoetter | Original Link