Please ensure Javascript is enabled for purposes of website accessibility

Prime Minister of Yemen’s Houthi Government Killed in Israeli Strike

3 days ago

Texas Gov. Greg Abbott Signs Law Redrawing Congressional Maps

4 days ago

US Air Force will Offer Military Funeral Honors to Slain Capitol Rioter

4 days ago

US Republican Senator Joni Ernst Will Not Run for Re-Election, CBS News Reports

4 days ago

Wall Street Falls as Dell, Nvidia Drive Tech Losses

4 days ago

US Denies Visas to Palestinian Officials Ahead of UN General Assembly

4 days ago

Minneapolis Children Revealed Courage, Absorbed Fear During Church Shooting

5 days ago

Ford Recalls Nearly 500,000 Vehicles Over Brake Fluid Leak

5 days ago

Fresno-Bound Passenger Says Delta Attendant Slapped Him, Seeks $20M

5 days ago
Tech Slump Sends Stock Market To Its Biggest Loss Since June
gvw_ap_news
By Associated Press
Published 5 years ago on
September 3, 2020

Share

NEW YORK — Wall Street’s euphoria took a break Thursday, as steep losses in technology stocks dragged the rest of the market down with them.

The S&P 500 fell 3.5%, the biggest decline for stocks since early June, when investors were dealing with a surge of coronavirus infections in places like Florida, Texas and Arizona. There seemed to be no explicit catalyst for the sell-off, with economic data coming in roughly where the market had expected and no companies issuing foreboding warnings.

The S&P 500 fell 3.5%, the biggest decline for stocks since early June, when investors were dealing with a surge of coronavirus infections in places like Florida, Texas and Arizona. There seemed to be no explicit catalyst for the sell-off, with economic data coming in roughly where the market had expected and no companies issuing foreboding warnings.

That said, the market felt due for a breather, investors said. Both the S&P 500 and Nasdaq hit record highs just the day before. Prior to Thursday, the S&P 500 had risen nine out of the previous 10 days.

Apple dropped 8%, Amazon lost 4.6% and Facebook gave back 3.8%. The Big Tech stocks have made massive gains this year. Investors have been betting those companies would continue posting huge profits as people spend even more time online with their devices. They’ve also assigned lofty market values to new-found darlings such as Zoom Video Communications as many Americans work remotely and students do online learning.

Market watchers have been questioning recently whether those gains were overdone. Apple is still up 64.7% for the year, and Amazon is up 82.3%. Zoom’s gain for the year is still a whopping 460.4%.

”There’s really very little to justify (these stocks’ upward move) other than euphoria,” said Mark Hackett, chief of investment research at Nationwide.

Hackett also noted the market has “embedded very optimistic assumptions” about the virus’s impact on the economy, as well as on prospects for Congress and the White House coming up with another economic relief package.

The government reported that the number of Americans who applied for unemployment benefits fell last week to 881,000, slightly better than what economists had expected. That said, companies are still letting workers go at numbers well above those seen in the Great Recession, meaning the jobs picture remains still extremely bleak despite recent improvements.

It’s Unlikely the Stock Market Will Rally Much Higher From Here

The stock market has rallied this spring and summer after plunging in March as investors realized the economic toll the coronavirus pandemic was going to cause. Most of the rally has been on strong performances from tech stocks, but also a hope that the worst of the pandemic is in the past, despite rising infections in schools and the possibility of a second surge of infections in the fall. Huge amounts of support from the Federal Reserve and Congress have also helped bolster the economy.

Investors will be paying close attention Friday when the Labor Department releases its August job report. Economists surveyed by FactSet forecast that the U.S. economy created 1.4 million jobs in August, but that would be down from 1.74 million jobs in July. Tens of millions of Americans remain unemployed however, as seen by this week’s unemployment benefits numbers.

If the jobs numbers do not deliver, it’s unlikely the stock market will rally much higher from here, analysts said.

The Dow Jones Industrial Average fell 807.77 points, or 2.8%, to 28,292.73. It was briefly down 1,000 points earlier. The day before, the Dow crossed 29,000 for the first time since February.

The S&P 500 index lost 125.78 points, or 3.5%, to close as 3,455.06. The technology-heavy Nasdaq dropped 598.34 points, or 5%, to 11,458.10.

Along with the biggest technology stocks, semiconductor companies also fell sharply. Nvidia, Qorvo and Advanced Micro Devices fell 8% or more. Even with Thursday’s drop Nvidia is still the biggest gainer in the S&P 500 so far this year.

The stocks that were doing better than the rest of the market were companies that have been beaten down this year: travel companies and airlines. Carnival Corp rose 5.2%, Norwegian Cruise Lines rose 3.8% and Royal Caribbean climbed 2.7%.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Tulare County Authorities Investigate Porterville Shooting

DON'T MISS

Trump’s World Liberty Token Falls in First Day of Trading

DON'T MISS

Bessent Expects Supreme Court to Uphold Legality of Trump’s Tariffs but Eyes Plan B

DON'T MISS

Trump Says Rudy Giuliani Will Receive Top US Civilian Honor

DON'T MISS

Aid Flotilla for Gaza Departs Barcelona After Stormy Weather Turnaround

DON'T MISS

Fresno County Garnet Fire Grows to 18,748 Acres in Sierra National Forest

DON'T MISS

US Judge Blocks Deportations of Unaccompanied Migrant Children to Guatemala

DON'T MISS

Israel Pounds Gaza City Suburbs, Netanyahu to Convene Security Cabinet

DON'T MISS

Thousands in Australia March Against Immigration, Government Condemns Rally

DON'T MISS

Trump Says He Will Order Voter ID Requirement for Every Vote

UP NEXT

US Judge Blocks Deportations of Unaccompanied Migrant Children to Guatemala

UP NEXT

Trump Says He Will Order Voter ID Requirement for Every Vote

UP NEXT

Chicago Mayor Says Police Will Not Aid Federal Troops or Agents

UP NEXT

Judge Blocks Pillar of Trump’s Mass Deportation Campaign

UP NEXT

Dollar Trades Lower With Fed Cut In View, On Course For Monthly Drop

UP NEXT

New $250 Visa Fee Risks Deepening US Travel Slump

UP NEXT

Lawsuit Links CA Teen’s Suicide To Artificial Intelligence

UP NEXT

Hearing Ends Without Ruling On Trump’s Firing Of Fed Governor Cook

UP NEXT

Gov. Newsom Launches New Task Force To Clear CA Homeless Encampments

UP NEXT

Texas Gov. Greg Abbott Signs Law Redrawing Congressional Maps

Trump Says Rudy Giuliani Will Receive Top US Civilian Honor

12 hours ago

Aid Flotilla for Gaza Departs Barcelona After Stormy Weather Turnaround

12 hours ago

Fresno County Garnet Fire Grows to 18,748 Acres in Sierra National Forest

2 days ago

US Judge Blocks Deportations of Unaccompanied Migrant Children to Guatemala

2 days ago

Israel Pounds Gaza City Suburbs, Netanyahu to Convene Security Cabinet

2 days ago

Thousands in Australia March Against Immigration, Government Condemns Rally

2 days ago

Trump Says He Will Order Voter ID Requirement for Every Vote

2 days ago

Greta Thunberg Joins Flotilla Heading for Gaza With Aid

2 days ago

Chicago Mayor Says Police Will Not Aid Federal Troops or Agents

2 days ago

Post-War Gaza Plan Sees Relocation of Population, ‘Digital Token’ for Palestinian Land: Washington Post

2 days ago

Tulare County Authorities Investigate Porterville Shooting

Tulare County sheriff’s deputies are investigating a shooting that left a man injured in Porterville on Monday afternoon. Deputies were call...

10 hours ago

A man was hospitalized after being shot Monday, Sept. 1, 2025, afternoon in Porterville, and Tulare County sheriff’s detectives are investigating. (Tulare County SO)
10 hours ago

Tulare County Authorities Investigate Porterville Shooting

Zach Witkoff, Co-Founder and CEO of World Liberty Financial, Donald Trump Jr. and Eric Trump pose before they ring the opening bell to celebrate the closing of ALT5’s $1.5 billion offering and adoption of its $WLFI Treasury Strategy at the Nasdaq Market, in New York City, U.S., August 13, 2025. (Reuters File)
10 hours ago

Trump’s World Liberty Token Falls in First Day of Trading

U.S. Secretary of the Treasury Scott Bessent pays his bill during a Labor Day visit to McLean Family Restaurant in McLean, Virginia, U.S., September 1, 2025. (Reuters/Brian Snyder)
10 hours ago

Bessent Expects Supreme Court to Uphold Legality of Trump’s Tariffs but Eyes Plan B

Former New York City Mayor and former lawyer for U.S. President-elect Donald Trump, Rudy Giuliani walks outside United States District Court in Manhattan, where a judge will consider a request by two Georgia election workers to whom he owes $148 million for defamation to hold him in civil contempt for failing to turn over his assets, in New York City, U.S., January 3, 2025. (Reuters File)
12 hours ago

Trump Says Rudy Giuliani Will Receive Top US Civilian Honor

Swedish activist Greta Thunberg departs with other activists on the Global Sumud Flotilla, a humanitarian expedition to Gaza, from the port of Barcelona, Spain August 31, 2025. The Sagrada Familia is seen in the background. (Reuters File)
12 hours ago

Aid Flotilla for Gaza Departs Barcelona After Stormy Weather Turnaround

Photo: USDA - Forest Service Tanker 40 at Fresno Air Attack Base. The Fresno County Garnet Fire in the Sierra National Forest has burned 18,748 acres and is 8% contained as crews make progress on containment lines while bracing for possible thunderstorms early this week. (Sam Wu/USFS)
2 days ago

Fresno County Garnet Fire Grows to 18,748 Acres in Sierra National Forest

U.S. flag and Judge gavel are seen in this illustration taken, August 6, 2024. (Reuters File)
2 days ago

US Judge Blocks Deportations of Unaccompanied Migrant Children to Guatemala

Smoke rises from Gaza after an explosion, as seen from the Israeli side of the border, August 31, 2025. (Reuters/Amir Cohen)
2 days ago

Israel Pounds Gaza City Suburbs, Netanyahu to Convene Security Cabinet

Search

Help continue the work that gets you the news that matters most.

Send this to a friend