⁍ Major U.S. stock indexes tumbled on Friday, dragged by losses in tech heavyweights that had been priced for perfection.
⁍ Apple Inc tumbled about 6.1% after it posted the steepest drop in quarterly iPhone sales in two years due to the late launch of new 5G phones.
⁍ Amazon.com Inc fell 5.48% after it forecast a jump in costs related to COVID-19.
⁍ The CBOE volatility index held at a 20-week high, a sign of jitters ahead of the final weekend before Election Day on Tuesday.
– The Dow Jones Industrial Average fell more than 400 points at the open on Friday, its largest single-day point drop since September. The S&P 500 and Nasdaq also were down more than 2% each, and both were on track for their worst week since March, per Reuters. Tech stocks were the worst performers, falling more than 2% as Apple, Amazon, Facebook, and Google parent Alphabet lost more than 2% each. The sell-off was triggered by a slew of disappointing earnings reports, including Apple’s “stunning” drop in iPhone sales in the third quarter and Amazon’s warning of a rise in costs related to the COVID-19 strain of meningitis that has now infected hundreds of people. “There is a big selloff in those big tech names because they didn’t live up to the hype and people are really worried about next week’s election,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
Source: https://www.reuters.com/article/us-usa-stocks/tech-slide-hits-wall-street-as-coronavirus-cases-spiral-idUSKBN27F1IT