Losses for tech stocks lead stock markets to fall sharply

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The New York and Toronto stock markets sold off on Thursday, led by stocks in tech companies that have been in tears since the start of the coronavirus pandemic.The tech-focused Nasdaq fell 590.36 points, or more than four percent, to hit 11,466.08 around noon. The Nasdaq has been in tears for months as investors pour money into tech companies like Netflix, Amazon, Zoom, and Google, amid rising demand for their services as millions of people pass more and more of time online due to COVID-19 lockdowns.

“The leading sector for quite a long time has been the Nasdaq, which is very heavily weighted in tech stocks, so people just saw this as an opportunity to take profits off the table,” said Randy Frederick, vice president of technology stocks. trading and derivatives for Charles Schwab in Austin, Texas.

“Some stocks have gotten a bit expensive, and it’s hard to say what the real cause of this sell-off is. ”

Thursday is shaping up to be the worst day for the Nasdaq since June. It’s also the worst day for so-called FAANG stocks – Facebook, Amazon, Apple, Netflix, and Google – since March.

But tech stocks aren’t the only ones selling. The Dow Jones Industrial Average of 30 large companies and the larger S&P 500 both fell about 3%. Losses were slightly smaller in Toronto, where the S & P / TSX Composite Benchmark lost about 1%.

Shopify, which has become the most valuable company in Canada in this pandemic, lost around 6% of its value to trade at just over $ 1,300 a share. Shopify’s TSX-listed shares tripled between early April and Wednesday.

Shares of TSX-listed payment processor Lightspeed also fell around 6% to trade at just over $ 44 a share. Since the low of $ 12 per share in March, Lightspeed shares have almost quadrupled.

The loonie lost about half a cent to change hands at 76.02 cents US from 76.53 cents US on Wednesday.

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