U.S. stocks sank for a third straight session, as the selloff of technology stocks gained momentum, which could see nervous investors fleeing to safer assets. The stock market-beating was the worst performance in a month, with Telsa bearing the brunt of the rout, losing over 34% in September alone.
The same giant tech companies that contributed to the stock market reaching record levels last month are now handing Stocks a brutal beat down in September. Apple was up more than 20% in August but on Tuesday, September 8th, Apple fell by more than 6% and other tech giants like Microsoft, Facebook and Amazon also fell sharply. Apple dropped a whopping 16% between last week’s peak and Tuesday’s close.
The S&P 500 index also closed lower, as energy shares declined in line with the fall in crude oil prices. Brent crude, the global oil benchmark, fell 5.3% to $39.78 a barrel, over concerns that oil demand is slumping amid a slower economic recovery.
More stock market volatility expected
More stock market volatility is expected as the election nears and as Trump reignites US-China tensions. USA China relations were dragged back into the spotlight as Trump again vowed to swiftly scale back or completely cut off U.S. economic ties with China. In a recent news conference, Trump said that he was considering “decoupling” from China.
Nervous investors are seemingly beginning to recalibrate their appetite for the stock market. On Tuesday, as stocks got hammered, the dollar moved higher and gold prices edged higher, as the market digested the reality that a market correction may be occurring.
Other factors seem to be weighing on investors’ appetite for stocks, including concerns about a resurgence of Covid-19 cases in the winter months and a slower economic recovery. Investors are also watching the Brexit issue closely as the UK is under pressure to deliver a trade deal with the EU.
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