Tech Stock Selloff Wipes Out a Week of Gains

Here’s what you need to know:

High-flying tech stocks stumbled sharply on Thursday, causing the S&P 500 to close with its worst drop since June.

The S&P 500 dropped 3.5 percent, wiping out more than a week of gains, while the tech-heavy Nasdaq composite was down nearly 5 percent. The Dow Jones industrial average briefly lost 1,000 points and ended the day down more than 800 points. Apple was down 8 percent. Amazon was down more than 4.5 percent, and Microsoft was down more than 6 percent.

As investors have bet that the coronavirus crisis would amplify the dominance of the tech companies’ business models, share prices of large cap technology companies have surged, generating the lion’s share of the stock market’s gains.

The rip-roaring race for tech shares has increasingly pulled in armchair investors, who have taken up speculating on stocks amid the work-from-home environment. Many of those traders

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