Sept. 3 (UPI) — The Dow Jones Industrial Average had its worst day since June on Thursday, and the S&P 500 and Nasdaq Composite fell off record highs.
The blue-chip index fell 807.77 points or 2.78%, its worst single-day decline since June 11, while the S&P 500 dropped 3.51% and the Nasdaq ended the day down 4.96% following what had been record-setting gains in stocks despite the coronavirus pandemic.
Big-tech stocks took a rare beating snapping a 12-day winning streak as Apple stock fell 8% Microsoft recorded a 6.19% loss while Google’s parent company, Alphabet fell 5.12%.
“Although there is no single driver for the weakness, it seems as if investors all of a sudden realized how overbought stocks are and sold. Someone yelled fire in a crowded theater and everyone left at once,” Ryan Detrick, chief marketing strategist for LPL Financial, told CNN.
Detrick added that, given the rally markets have experienced over the summer, it is “perfectly normal” to see stocks readjust.
Stocks that would benefit from the widespread lifting of restrictions related to the COVID-19 pandemic rose on Thursday, with Carnival Cruise Line gaining 5.21% and Macy’s stock increasing 7.94%
The stock market appeared to have ignored the pandemic and economic struggles with the S&P 500 soaring up more than 55% since March and the Nasdaq jumping almost 70%. The Dow increased more than 50% over that time as well.
