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%.
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.
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.