U.S. Tech Extend Losses in Worst Week Since March: Markets Wrap

U.S. Tech Extend Losses in Worst Week Since March: Markets Wrap

(Bloomberg) — U.S. stocks turned lower, with megacap tech shares sinking for the sixth time in seven days amid renewed volatility.


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The Nasdaq 100 dropped 1% in afternoon trading, heading for its worst week since March. Apple and Amazon.com lost at least 1.8%. Selling picked up after Bloomberg reported SoftBank Group Corp. is considering revamping a controversial strategy of using derivatives to invest in tech companies. Most S&P 500 shares rose, but the index retretated as its biggest components fell.

The dollar was lower, though cut losses some after data showed U.S. inflation accelerated more than economists’ expectations in August. Oil was little changed.

“You see this kind of volatility when there is a vacuum of information for investors, and we don’t have good data,” said Erika Karp, founder and CEO of Cornerstone Capital Group. “Markets can adapt when there is certainty, but when there is extreme uncertainty and when we’re in a period of transition, you’re going to get volatility.”

a screenshot of a cell phone: Nasdaq 100 heads for first day this month without 1% move

© Bloomberg
Nasdaq 100 heads for first day this month without 1% move

Global stocks remain on track for the first back-to-back weekly declines since March after a rally that added $7 trillion to U.S. equity values. The pandemic is continuing to upend the global economy, with U.S. data showing cracks in recent labor-market strength and virus cases continuing to climb globally.

“When you see these short-term, sudden moves after a run-up like we’ve had, it doesn’t mean you avoid the sector, but you have to be prepared that it’s the price of admission of being there,” said Charles Day, a managing director and private wealth advisor at UBS Global Wealth Management. “Investors should stay invested, we’re still positive on equities.”

In Europe, traders are closely watching comments from European Central Bank officials after President Christine Lagarde spurred a rally in the euro on Thursday when she delivered relatively mild comments on the currency’s surge. Chief Economist Philip Lane set a tougher tone on Friday, signaling more monetary stimulus may be needed. Meanwhile, the British pound headed for its biggest weekly drop since March as Brexit talks frayed.

In other markets, crude oil hovered around $37 a barrel in New York and gold dipped. The MSCI Emerging Markets Index rose, ending a seven-day losing streak.

These are the main moves in markets:


The S&P 500 was little changed as of 12: 46 p.m. in New York.
The Nasdaq Composite Index fell 0.7%.
The Nasdaq 100 Index fell 0.8%.


The Bloomberg Dollar Spot Index fell 0.2%.
The Japanese yen was little changed at 106.17 per dollar.
The euro increased 0.2% to $1.1835.


The yield on two-year Treasuries decreased one basis point to 0.13%, the lowest in a week.
The yield on 10-year Treasuries dipped one basis point to 0.67%, the lowest in a week.
The yield on 30-year Treasuries fell less than one basis point to 1.42%, the lowest in a week.


West Texas Intermediate crude fell to $37.47 a barrel.
Gold eased to $1,957 an ounce.

(A prior version of this story was corrected indicate Nasdaq 100 had two straight weekly drops in July.)

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©2020 Bloomberg L.P.

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