The Close: Markets Retreat Due to Big Tech Sell Off.
On a day filled with gloomy weather, and a bit of snow mixed in, the markets certainly felt the effects. Big tech saw a massive sell off today, as stimulus talks began to stall in congress, causing the other two indexes to retreat as well. An immense amount of differing sectors saw declines today, as major companies received news which pushed their prices lower than they already were. Things did not begin all gloomy in the market, though. Markets opened high, then had subsequently begun to decline. Republicans and Democrats released new offerings from their parties respective stimulus packages, which has shown investors there is no definitive answer for stimulus in the near future.
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The Dow dropped down to 30,068.81, retreating by 105.07 points, or -0.35%. The S&P 500, which notched another all time high during intraday trading, finished well below that level, currently at 3,672.82, lowering by 29.43 points, or -0.79%. The NASDAQ, which has seen a few consecutive days of record closes, finished well below those figures as well, declining to 12,338.95, lowering by an astonishing 243.82 points, or -1.94%.
Some big tech stocks that were heavily affected, and heavily influential, in this sell off were Facebook. Facebook, $FB, closed down -1.93% as news came out that they are being sued by 48 states due to a breach in antitrust laws. Tesla, which is typically a very strong performer, also fell today. Tesla, TSLA, which is at the moment within the NASDAQ but will soon be added to the S&P 500, fell by a mere -7.24% today, which included after hours trading. JP Morgan and Chase made a statement about Tesla, which influenced the sell off of the stock. JP Morgan and Chase called Tesla “dramatically” overvalued, which had pushed investors to sell the stock.
While it wasn’t all doom and gloom for the market today, DoorDash, $DASH, saw big gains on their IPO day. The stock gained +85.79% from their IPO price, which is an astonishing day 1 gain as they weren’t offered on the secondary market until about 1:00 pm.
Things to look ahead for the markets tomorrow? There's a massive meeting amongst the FDA and some of the big pharma companies who are producing coronavirus vaccines. Members of this meeting will discuss the vaccination which was produced by Pfizer/BioNTech. Finally, there is a jobless claim report which is due tomorrow, which isn’t necessarily a big deal for investors during this time, but they will certainly take those figures into account.