Tech stocks got hammered again Tuesday as Wall Street pulled back for a third straight session. The recent high-flying Apple, Microsoft, Amazon and Facebook were the biggest drags.
The index loaded with tech stocks, Nasdaq, took the biggest hit, plunging more than 4%. The S&P 500 plummeted nearly 3%, and the Dow shed over 2%.
Since hitting a record last Wednesday, the Nasdaq has dropped 10%. Chief investment officer Randy Watts of O’Neil Global Advisors says investors should resist buying the dip - at least for now.
“We think it’s unlikely the tech correction is over yet. So we think some of these big names will pull back a bit and may give investors much better buying opportunities either right before or right after the election.”
Tesla shares plummeted 21% after the electric car maker got snubbed from joining the S&P 500 list. Still, the stock is up almost 300% this year.
JPMorgan Chase shares slipped. Reuters reported that the bank was investigating employees who were allegedly involved in the misuse of federal funds meant to help small businesses and customers hurt by the pandemic.
Bucking the downtrend: Electric vehicle maker Nikola rose more than 40%. It’s teaming up with GM to build electric pickup trucks and fuel cell commercial trucks to take on Tesla.