Tech Companies Drag Stock Market Down As Dow Jones Loses Over 800 Points
By Bill Galluccio
October 10, 2018
The stock market continued to take a beating as the Dow Jones Industrial Average lost over 800 points, which was the largest single-day decline since February. The Nasdaq and S&P 500 also saw big drops, thanks to a major sell-off of tech stocks. The S&P fell almost 95 points, while the Nasdaq was down over 300 points on Wednesday (10/10).
The Dow has had a rough week, finishing in the red in four of the previous five trading sessions, thanks to concerns over rising interest rates and a decline in tech stocks. Amazon's stock was down almost four percent while Facebook and Apple both saw their stock prices drop by nearly two percent on Wednesday.
"People are getting out of the high-flying tech names right now," Larry Benedict, CEO of The Opportunistic Trader told CNBC. "I think people are under-hedged; there could be more pain ahead."
Investors are also concerned over rising trade tensions between the United States and China, which caused the International Monetary Fund to cut its outlook for growth in the global economy to 3.7% earlier in the week.
"This goes back to the assumption that the market made wrongly ... that once we got NAFTA 2.0 done, we'd pivot to China," Art Hogan, chief market strategist at B. Riley FBR said. But "the rhetoric on China has only gotten worse, not better."
Photo: Getty Images