The S&P 500 dropped 3.51%, pulling away from record highs, which came on the back of yesterday’s poor share price performance of Tech companies.
Yesterday, US equities have observed a solid drop, which is the most in almost three months. The S&P 500 dropped 3.51%, pulling away from record highs, which came on the back of yesterday’s poor share price performance of Tech companies. To be specific, Apple dropped by 8.01%, Microsoft by 6.19%, Amazon by 4.63% and Facebook by 3.76%. Despite yesterday’s decrease S&P 500 is still up by 6.94% YTD.
Meanwhile Nasdaq 100 sank 5%, its largest decline since March. It also worth noting that Tesla, whose share price skyrocketed this year, dropped by 9.02% yesterday.
As a result of the above-mentioned VIX soared to 33.6, representing a daily increase of 26.5%. The “fear” index was last time seen at such figure in mid July.
Yesterday’s decrease could arguably be attributed to investors questioning the sustainability of such elevated tech valuations, as the pandemic continues. It seems too soon to conclude whether this could be seen as a the beginning of a more significant decline for big tech companies. We will be monitoring the markets closely, to see whether yesterday’s trading will have any spillover effect on today’s trading of the regional markets.
