Tech stocks drive Wall Street down by over 400 points in Dow's tumble
Tuesday saw a significant drop in stocks, with tech shares at the forefront, pulling back from their recent peak. The market turmoil follows last week's record highs.
Stocks took a hit on Tuesday, especially in the tech sector, as they continued to decrease from the all-time highs reached last week.
The Dow dropped by 405 points, which is about 1%, after falling over 500 points at one point during the day. The S&P 500 also went down by 1%, while the Nasdaq Composite experienced a larger decline of 1.7%.
The Nasdaq Composite recently hit a new all-time high for the first time since 2021, with the S&P 500 also reaching a new record high last week.
Apple experienced a 2.8% drop in its shares on Tuesday afternoon following a report by Counterpoint Research. The report highlighted a 24% year-over-year decline in iPhone sales in China during the first six weeks of 2024. This decline was attributed to tough competition from companies like OPPO, Vivo, and Xiaomi.
Shares of Advanced Micro Devices dropped by 0.1% after a report from Bloomberg News, which mentioned anonymous sources, stated that the company is encountering regulatory challenges in China for selling its AI processor.
Additionally, other tech stocks also experienced declines. Meta Platforms saw a decrease of 1.6% in its shares, Microsoft shares dropped by 3%, and Micron Technologies shares fell by 1.3%.
All of the S&P 500’s sectors fell on Tuesday, except for financials, energy and consumer staples.
Still, gold rose on Tuesday to settle at yet another record high of $2,141.90 a troy ounce.
This is a developing story and will be updated.
Editor's P/S:
The recent market downturn, particularly in the tech sector, is concerning. The decline in iPhone sales in China and regulatory challenges faced by Advanced Micro Devices raise questions about the resilience of the tech giants that have driven the market's growth in recent years. The broader market's weakness, with all sectors except financials, energy, and consumer staples declining, suggests a more systemic issue may be at play.
However, the rise in gold to a record high provides a glimmer of hope. Gold is often considered a safe haven asset during times of market uncertainty, and its recent surge may indicate investors are seeking shelter from the volatility. The developing nature of this story suggests that it will be crucial to monitor the market closely in the coming days and weeks to assess the extent of the correction and its potential impact on the broader economy.
