The Nasdaq is in Another Correction Territory
The Wall Street records one rough day after the other, the worst since June. Technology-heavy Nasdaq tumbles anew, falling into the correction territory.
It recorded a significant 10% fall after trading at high, finally settling at a 4.1% drop for the day. All two other indices traded in the red.
The S&P 500 closed at a 2.8% slash while the Dow30 ended, shedding 632 points, translating to a 2.3% stall. The Dow futures are also down by 234 points or 0.9% in the after-hours.
The month is projected to be a correction month for the Nasdaq’s blue chips, analysts say. Technology stocks experienced successive days of setbacks since last week.
As if to make the situation worse, the mysterious stock market driver termed as “Nasdaq’s Whale” is unveiled earlier in the week.
Softbank is believed to have bought a vast scale of equity derivatives in the form of stock options from the Nasdaq’s tech frontrunners, namely Amazon, Microsoft, Apple Inc., and Tesla.
Experts believe that the Japanese firm may have profited $4 billion at present from its shady move. Softbank declined to address the issue.
Will Tech Stocks Revamp?
In current figures, the Nasdaq’s technology stocks suffer from their worst sell-off since March, in the middle of market turmoil and uncertainty ignited by the pandemic.
Apple has fallen 16% from last week’s peak after its 4-for-1 stock splits to today’s figures. Similarly, Alphabet dropped 11% from the same period.
But among the worst recipients of the shock is the Elon-Musk owned Tesla. The EV manufacturer chipped off approximately 21% since last week.
As if to add an insult to the injury, it failed to secure its coveted spot in the S&P 500 even after recording four consecutive quarters of profitability.
But the worst receiver of the blow is the Nasdaq’s whale itself. After the reports of options hoarding, investors packed their share, leaving Softbank to a $10 billion dent in market value.
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