Tuesday's Market Recap - Dow Down More Than 600 Points Led By Big Technology Stocks
What is The Premarket Telling Us?
7:00 AM.
Stock futures are mostly mixed, to mostly lower at this hour, suggesting that Friday's selloff could continue today. Dow up 12 points, Nasdaq futures down 275 points, S&P down 20 points. Asian stocks were lower overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 0.72%, up 0.10%.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.31
Crude Oil:
WTI crude oil futures $37.85/barrel, down 4.83%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed higher in their session. Japan (Nikkei 225) gained 0.80%, Shanghai up 0.72%, Hong Kong (Hang Seng) added 0.14%.
Major European markets were all lower. German (DAX) fell 1.01%, France CAC 40 down 1.59%, London FTSE 100 up 0.12%.
Market And Sector Dynamics
After being closed for yesterday's Labor Day holiday, the market opened the shortened week of trading aggressively lower. The Dow sank 400 points, Nasdaq tanked 412 points, and the S&P lost 70 points. So too was the price of WTI crude oil at $37.05/barrel, down 6.75%, and US 10 Year Bond Yield at 0.679%. All eleven S&P sectors were lower from the outset.
At the low of the morning, the Dow fell more than 625 points half an hour after opening. Markets recovered some of the earlier losses during early afternoon trading, but was not match for massive selling pressure in the final minutes of trading, to close at the lows of the day.
There is speculation that the major turbulence in the market is the result of SoftBank, buying huge amounts of big technology stock during the last month, and they are now unloading some of those positions.
Shares of Tesla, Apple, Boeing and others exerted immense pressure the markets in today's session, ending the day down 21%, 7%, and 6%, respectively.
All eleven S&P sectors ended the day with sharp losses, led by Technology, Energy, Financials, Communication Services, Consumer Discretionary, Consumer Staples, Basic Materials, Industrials, Healthcare, Real Estate, and Utilities.
Factors Influencing Today's Market
The selloff in shares of Tesla, Apple, and Boeing weighed heavily on the Dow in the session.
Some investor believe Tesla may have been snubbed not included in the S&P 500 index as some had hoped.
Shares of big technology growth companies that ran up in the last few weeks, also fell hard today.
WTI crude oil closed at $36.59/barrel, down 6.66%.
US 10 Year Bond Yield ended the day at 0.682%, down 5.24%.
Asian markets ended modestly higher in their session. European market ended lower.
Market Close Volume Traded And Advance Decline Ratio
When the market closed all the major indexes were sharply lower. The Dow fell 632.42 points, Nasdaq lost 465.44 points, and the S&P lost 95.12 points. Total NYSE volume traded, a moderate 4.64 billion shares. Declining shares outpaced Advancing shares by 3.69:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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