Ayyyeee… What’s Goodie Everyone. So I got some tea and it involves wall street specifically.
The three major U.S. indexes experienced steep, across-the-board losses on as technology shares continued to fuel a sell off that ended a five week winning streak on Wall Street and slashed 10 percent off the Nasdaq composite in three days.
After an uptick that analysts say is typical of September, U.S. markets dropped Thursday and Friday, dragged down by the tech giants ahead of the long holiday weekend. The markets were closed on Labor Day.
The Dow Jones industrial average dropped 632.42 points, or 2.3 percent, to close at 27,500.89. The Standard & Poor’s 500 index dropped 95.12 points, or 2.8 percent, to settle at 3,331.84, while the tech heavy Nasdaq tumbled 465.44 points, or 4.1 percent, to end at 10,847.69.
Other big Tech lost big on Tuesday was Amazon gave up 4.4 percent, Facebook dropped 4.1 percent and Alphabet fell 3.6 percent. And biotechnological firm Moderna, which is working on a coronavirus vaccine candidate, lost nearly 13.2 percent.
Then Tesla shares plunged 21.1 percent Tuesday after the S&P 500, in a surprise move, passed on the carmaker. Investors in the highflying electric car company had been banking on Tesla joining the benchmark index its share price has been rising all summer. And the company’s stock has rocketed more than 350 percent from the beginning of the year.
Optimistic investors still continued to pour money into the company, sending its market capitalization above corporate giants., And in another summer milestone, Tesla surpassed the market value of Toyota, seizing the crown of the most valuable carmaker in the world, despite selling fewer than 400,000 vehicles last year, compared to Toyota’s 10.74 million.