S&P 500 and The Dow Enter Major Reversal Led by Tech Stocks Fall

12 August 2020

    S&P 500 and the Dow had both ended Tuesday negatively due to the sale of hit stocks, following reports that fiscal talks on the next coronavirus stimulus package had hit a wall.

     

    Senate Majority Leader Mitch McConnell had stated to Fox News that the talks between the Democrats and the White House were at "a stalemate," reducing investor optimism that flourished on the idea that a new round of fiscal stimulus is about to be introduced.

     

    As a result of the news, industrials, in particular airlines, have lost their earlier gains. American Airlines and United Airlines have both turned negative, while Delta Air Lines ended up at 1%.

     

    Tech stocks have, however, hit the indexes the hardest, as they continued their slump deeper into the negative. Facebook, Google, Apple, Amazon and Microsoft, which account for about 25% of S&P 500, all fell, with the last three giants having crashed a whole 1.5%.

     

    All in all, the Dow has fallen 0.37% and S&P 500 - 0.80%, ending the seven-day winning streak for both indexes. Nasdaq had, in turn, fallen a staggering 1.69%.


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