Wall Street Falls After Rebound Fades; Tech Stocks Retreat

fter opening higher, Nvidia (-5%), Meta Platforms (-1.05%), Microsoft (-0.30%), and Tesla (-4.4%) all closed with losses.

Ignacio Teson•Thursday, August 8, 2024•1 min read

The averages fell after the rebound from Monday’s sharp decline lost momentum and doubts about tech stock levels returned.

The three main Wall Street indices fell on Wednesday, reversing a positive session start. The averages dropped after the rebound from Monday’s sharp decline lost strength, and doubts about tech stock levels reemerged.

The Dow Jones Industrial Average, composed of 30 major companies, dropped 0.60% to 38,763.45 points. The S&P 500, which includes 500 stocks, fell 0.77% to 5,199.50 points, while the tech-heavy Nasdaq Composite decreased 1.05% to 16,195.81 points.

The Bank of Japan sent a calming message to the markets after a surprise rate hike that caused volatility. Shinichi Uchida, the central bank’s deputy governor, stated that they would be more cautious before raising rates again.

Although markets initially reacted optimistically, this reaction in the United States faded due to recession bets in the world’s largest economy and doubts arising from the quarterly reports of major tech companies.

SPX

After opening higher, Nvidia (-5%), Meta Platforms (-1.05%), Microsoft (-0.30%), and Tesla (-4.4%) all closed with losses, losing their momentum. Apple (+1.27%), Amazon.com (+0.51%), and Alphabet (+0.13%) rose, but all saw declines after the close.

The worst performance among tech stocks was by server provider Super Micro Computer, which fell over 20% after its latest fiscal quarter results fell short of analysts’ estimates.

By sector, there were mixed performances, with moderate gains in utilities and energy, while consumer discretionary and materials dropped more than 1%. In the Dow Jones index, Amgen (-5%) and Disney (-4.43%) led the declines.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.