2024-07-26 07:00:00 ET
Summary
- Stocks, especially the tech-heavy Nasdaq, plummeted on Wednesday with the Dow dropping 1.25%, S&P 500 falling 2.31%, and Nasdaq cratering 3.64%.
- Tech stocks took a hit after lackluster Alphabet and Tesla earnings, leading to worries about Big Tech's fading power to fuel gains.
- Magnificent 7 tech stocks lost over $750 billion in market cap, with Nvidia, Broadcom, and Arm experiencing significant drops.
- Real estate has been around for millennia. And unless we somehow manage to become online entities, it’s going to be around for quite a while more.
Stocks were absolutely smoked on Wednesday, especially the tech-heavy Nasdaq.
The Dow (DJI) dropped 504.22 points, or 1.25%, and the S&P 500 (SP500) fell 128.61 points, or 2.31%. But the Nasdaq (COMP:IND) fared worse by far, cratering 654.94 points, or 3.64%.
Why?
I’ll let Yahoo Finance explain :
“Tech stocks took a drubbing on Wednesday after lackluster Alphabet and Tesla earnings stirred up worries that Big Tech’s power to fuel gains is fading…
“Stocks [sank] as investors digest mixed quarterly earnings from Google parent Alphabet ( GOOGL , GOOG ) and Tesla (TSLA), the first of the ‘Magnificent 7’ mega caps to report. EV maker Tesla’s stock price slid more than 12%, while Alphabet shares dropped more than 5%.
“In aggregate, the Magnificent 7 tech stocks lost more than $750 billion in market cap on Wednesday, the most on record for the group.
“Chip stocks also tumbled… as Nvidia ( NVDA ) fell almost 7% while Broadcom ( AVGO ) and Arm ( ARM ) each dropped about 8%.”
“Barron’s, for its part, adds that , “Investors are also likely double-guessing their take on artificial intelligence and whether the massive investments will see the payoff they’ve imagined.” And as for the larger selloff:
“Former New York Fed President Bill Dudley, meanwhile, said the Federal Reserve should cut rates in July, sparking questions of whether there’s weakness in some pocket of the economy that the markets are missing.”
And so, instead of investigating that concern, investors sold everything. That’s what happens when you’re investing on enthusiasm alone.
Nvidia Is Impressive, But…
Essentially, everyone panicked on Wednesday’s news, turning previous hope-based hype on its head. There’s little else to say about it, except that I’m sincerely sorry for anyone who saw their positions plummet....
Read the full article on Seeking Alpha
For further details see:
The REIT Way To Invest