After an abysmal Thursday in the Stock Market, the tech sell-off continues this Friday, September 4th. This comes after a tremendous performance in the tech sector.
The Dow Jones Industrial Average (^DJI) fell 1.5% (420 points). This morning, the Dow was up a bit over 200 points before a turn-around causing the crash. At it’s lowest point, the Dow was down more than 600 points. This huge dip came at a surprise to many investors, after a very successful start of the week. This dip left a lot of investors wondering how, and why, this happened.
With the recent stock-splits of Apple (AAPL) and Tesla (TSLA), the stock market saw a surge between Monday and Wednesday. These companies rallied when the stocks became more accessible to beginner investors. Analysts are calling these rallies excessive, noting that Apple and Tesla are the main catalysts as to why the markets dropped overwhelmingly on Thursday.
Many tech-stocks are down including Apple, Tesla, Microsoft, Alphabet, Amazon, Netflix, and more. This drop has lead many to believe that the market is heading back to the levels of June’s dip. The difference between this drop and June’s is the national state of unemployment and COVID-19.
Since July, unemployment fell 8.4%, said the Labor Department. While the job data was solid for these past few days, this dip is caused by the sell-off in the tech sector.
Expectations are pointing towards a recovery in the near future.