The NASDAQ Composite stock market index and The S&P 500 stock market index both closed at all-time highs on Monday, August 24, 2020 - the second consecutive trading day that each market index reached a record closing. - File Photo by: zz/STRF/STAR MAX/IPx 2020 6/14/20 Atmosphere in and around Wall Street and The New York Stock Exchange in the Financial District of Lower Manhattan, New York City on June 14, 2020 during the coronavirus pandemic amid the aftermath of protests, demonstrations, riots, vandalism and destruction of property in response to the death of George Floyd who died while being arrested by police officers in Minneapolis, Minnesota on May 25th. (NYC)

Blood Exchange: Dow and Nasdaq sink

Stocks erased all gains after a huge spin on Wednesday as the S&P 500 – Wall Street’s widest measure – and the Nasdaq hit an even higher record. The Nasdaq also had climbed over 12,000 points for the first time in history on Wednesday.

Around noon, all three key indicators had bounced off their morning lows, but remained sharply in the red. The Dow fell 1.7%, or more than 500 points, and the S&P 2.4%.

For one, the Nasdaq has a better performance the other two key stock indices – the Daou (UNDUE) and S&P 500 (SPX) – for months. The rally has been going on long enough for investors to make a profit now.

Nevertheless, the Nasdaq remains almost 30% in 2020, still well above its counterparts.

“Although there is no guide to weakness, it seems like investors are suddenly realizing how supermarkets are being sold and sold. Someone shouted at a packed theater and everyone left immediately,” said Ryan Detrick, chief strategist at LPL Financial. , in comments via email.

However, there are technical reasons for Thursday’s fall: As US-China relations are abrupt, investors are shifting money from technology, which could be hit harder by a possible tariff hike.

“The Nasdaq is being hit hard by the continuing cycle and the expectation that high technology will eventually pay the price for further deteriorating US-China relations,” said Ed Moya, senior market analyst at Oanda.

Stocks in cyclical sectors are also expected to perform better as the economy recovers.

Big Tech companies like Amazon (AMZN), Google (GOOGL) and Microsoft (MSF), which are part of the Nasdaq, have been made investing in a safe summer shelter. But investors have started I wonder when the rally will end, either because of increased regulation or because the economy as a whole is growing fast enough to eliminate the need for safe choices.

Given the summer rally, it is “perfectly normal” to see technology stocks adjust slightly, Detrick said.

And even investors still loyal to their safe technology have little to worry about: Dr Anthony Fauci, director of the National Institute of Allergies and Infections, told CNN on Thursday that a Covid-19 vaccine would remain in place until October. unlikely “, although it was possible.

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