Most U.S tech stocks on the Nasdaq composite slumped yesterday, as tech juggernauts, Facebook Microsoft, NVidia, Amazon, shed more than 2% after gaining earlier on Monday.
The selloff could be attributed to the California Governor’s order on closure of indoor restaurants, shut bars, gyms, hair salons, and closing churches in hardest-hit regions.
Tech stocks in the S&P 500 have rallied nearly 16% this year, even after Monday’s 2.1% slump, fueling a logic-defying market rebound that has largely pulled the major U.S. stock indexes out of their pandemic-induced slump.
Unofficially, the Dow Jones Industrial Average rose 11.04 points, or 0.04%, to 26,086.34, the S&P 500 lost 29.69 points, or 0.93%, to 3,155.35 and the Nasdaq Composite dropped 226.60 points, or 2.13%, to 10,390.84.
Quick fact; The Nasdaq Composite is made up of companies that trade on the Nasdaq. These companies include major software and internet-based juggernauts (Apple, Facebook Microsoft, NVidia, and Amazon) but also include biotech, financial and industrial companies’. The Nasdaq Composite tracks over 3000 stocks.
“The rally’s been driven by a handful of names. You’ve had headlines about COVID and layoffs and the economy. It’s finally caught up with these names everybody’s been hiding in,” said Michael O’Rourke, chief market strategist at Jones Trading in Stamford, Connecticut.