After a massive rally, Wall Street suffered its worst day in almost three months as investors’ dumped the high-flying technology stocks. Concerns over lofty valuations also compelled investors’ to book profits. Deadlock over another financial-aid package, budget negotiations, and election uncertainty added to the chaos.
Though some data points indicate that the economy is gradually returning to pre-pandemic levels, it is still weaker by most measures. Millions of Americans remain out of work, and many industries such as travel, tourism and entertainment are struggling (read: Top-Ranked Mid-Cap ETFs Set to Defy September Curse). As a result, the S&P 500 and the Nasdaq Composite Index suffered their worst one-day slump since Jun 11, falling 3.5% and 5%, respectively, while the Dow Jones Industrial Average logged in its worst one-day decline of 2.8% since Jun 26. Dismal Zones
The hot and soaring technology segment went into a freefall with the S&P Information Technology sector tumbling 5.8% and snapping a 10-day winning streak. The sector also logged in its biggest one-day loss since March. Zoom Video Communications
ZM — the hottest stock of the stay-at-home trend — plunged 10% on the day while Apple ( AAPL Quick Quote AAPL - Free Report) dropped 8%, marking its biggest one-day decline since Mar 16. Microsoft ( MSFT Quick Quote MSFT - Free Report) slid more than 6% while Alphabet ( GOOGL Quick Quote GOOGL - Free Report) lost 5% in value. Amazon ( AMZN Quick Quote AMZN - Free Report) , Netflix ( NFLX Quick Quote NFLX - Free Report) and Facebook ( FB Quick Quote FB - Free Report) were both down nearly 4% each. While all tech ETFs saw terrible trading, W isdomTree Cloud Computing Fund stole the show, tumbling 8.2%. I WCLD nvesco DWA Healthcare Momentum ETF (, PTH Quick Quote PTH - Free Report) ARK Innovation ETF , ARKK iShares North American Tech-Multimedia Networking ETF , IGN Invesco Dynamic Networking ETF and PXQ First Trust Nasdaq Semiconductor ETF saw decline of at least 7% each. FTXL The consumer discretionary and communications services sector also dropped with Invesco DWA Consumer Cyclicals Momentum ETF and PEZ Proshares Online Retail ETF shedding nearly 6% each. ONLN Alternative energy ETFs Invesco Solar ETF (and TAN Quick Quote TAN - Free Report) First Trust Nasdaq Clean Edge Green Energy Index Fund also dropped 7.7% and 7.2%, respectively (read: QCLN Cyclical ETFs to Gain on Vaccine Progress & Market Optimism). Winning Zones
The CBOE Volatility Index (VIX), also known as the fear gauge, spiked as much as 26% to 33.45 — the highest reading in seven weeks. As a result, volatility ETFs outperformed in yesterday’s trading session with
iPath Series B S&P 500 VIX Short-Term Futures ETN (and VXX Quick Quote VXX - Free Report) ProShares VIX Short-Term Futures ETF ( gaining more than 13% each. VIXY Quick Quote VIXY - Free Report) Low-risk products gained as these provide some shelter during market turmoil. Cambria Tail Risk ETF and TAIL AGFiQ US Market Neutral Value Fund were up 1.6% each. AdvisorShares Dorsey Wright Short ETF and DWSH The Core Alternative ETF gained nearly 1% each. CCOR The market sell-off has raised the appeal of the U.S. government bonds tracking the long end of the yield curve. PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF , ZROZ Schwab Long-Term U.S. Treasury ETF , SCHQ SPDR Portfolio Long-Term Treasury ETF , SPTL Vanguard Long-Term Government Bond ETF and VGLT iShares 20+ Year Treasury Bond ETF ( were in the green with less than 1% gains (read: TLT Quick Quote TLT - Free Report) 10 Power-Packed ETFs to Buy for Second-Half 2020). Want key ETF info delivered straight to your inbox?
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