After the Nasdaq 100 had been almost a third higher in the past few days with a peak of over 12,400 points than before the start of the global stock market crash at the end of February, the crash came this Thursday. Two and a half hours before the market close in New York, the barometer posted a minus of 4.59 percent to 11,850.17 points.
The tech weakness could not escape the standward values either: The leading index Dow Jones Industrial lost 2.38 percent to 28,406.81 points, while the market-wide S&P 500 fell by 3.11 percent to 3,469.56 points. According to the chart expert Franz-Georg Wenner from Index Radar, the Dow appears to be overheated in the short term and its further medium-term potential is limited, but he is not afraid of sharper price setbacks. In contrast to the indices on the Nasdaq and the S&P 500, the Dow had not yet reached any new records.
The tech high-flyers of the past few weeks now paid tribute to their run with high losses: Apple, Amazon and Tesla sagged by up to eight percent in some cases. The titles of Zoom Video – as a software specialist for video conferencing and a corona crisis winner – slipped by almost ten percent. Two days ago they only shot up by a good 40 percent after convincing quarterly figures.
The new members of the Dow Salesforce and Amgen, with which the leading index is supposed to better reflect future trends such as cloud and biotechnology, came under considerable pressure with a minus of five and a half and three and a half percent respectively.
Investors switched from the strong industries such as technology to the sectors punished so far in the corona pandemic. Papers from airlines such as United Airlines or American Airlines were therefore clearly in the plus. Shares from the energy sector also outperformed the market as a whole./ajx/jha/
(AWP)
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