Nasdaq sinks by more than 3pc, Dow plunges by 558 pointsBusiness | 8 Sep 2020 9:51 pm
Stocks fell sharply Tuesday on Wall Street to start the week as technology shares were under pressure following their worst sell-off in more than five months last week, CNBC reports.
The Nasdaq Composite dropped by 3.7 percent and the Dow Jones Industrial Average plunged by 558 points, or more than 2 percent. The S&P 500 slid by 2.5 percent.
“High valuations in the mega-cap stocks are stretched far beyond historical levels,” said Bruce Bittles, chief investment strategist at Baird. “The technical indicators – high margin debt, fully invested mutual funds, CBOE options data showing record call volume, Wall Street letter writers at bullish levels -- pointed to excessive optimism in the market which often suggests a consolidation/correction phase is likely.”
On Friday, stocks snapped a five-week winning streak after a big reversal in major technology stocks.