Nasdaq slips 3% as tech rout intensifies; Dow loses 400 points

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The Nasdaq fell more than 3% at the opening on Tuesday as investors sold shares in Tesla and other tech heavyweights, while US-China tensions and concerns over a difficult economic rebound have grown. also weighed on sentiment.

The Nasdaq Composite lost 412.44 points, or 3.65%, to 10,900.70 at the opening bell. The Dow Jones Industrial Average fell 208.08 points, or 0.74%, to open at 27,925.23, while the S&P 500 opened 55.08 points lower, or 1.61%, at 3,371.88.

The Nasdaq 100’s three-day slide topped 10% after its sharp rise from March lows pushed valuations towards levels last seen in the dot-com era. Tesla Inc. plunged 15% after being snubbed for inclusion in the S&P 500 and is now down more than 25% in September. All 11 S&P 500 groups withdrew.

The speculative fever that led to huge bullish bets in the options markets and saw the shares of bankrupt companies soar in September, wiping out billions of dollars in market value. The hardest hit sectors remain slightly higher for the year, fueling debate among policy makers as to whether the latest pullback is a sign of market health or the start of a larger pullback that needs to go further. far.

“A bit of foam has come off the market which is a good thing, but keep in mind that we are staying well above levels that could be considered ‘fair value’ of stocks,” Tom Try, a former Merrill Lynch trader who founded “The Sevens Report” newsletter, wrote in a memo. “And while the outlook for equities generally remains positive over the long term, there is much more setback on this. worked if we have major disappointments. “

For now, traders have sought the safety of safe-haven assets, pushing Treasury yields lower and strengthening the dollar. Oil was approaching $ 40 a barrel in London and gold fell.

Relations between the United States and China are also coming back into focus after President Donald Trump announced his intention to end America’s dependence on the country. Trump has also threatened to punish all U.S. companies that create jobs overseas and to ban those doing business in China from winning federal contracts.

This story was posted from an agency feed with no text editing. Only the title has been changed.

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