The sell-off of the tech titans extended into a second day in a choppy session Friday. The Nasdaq plunged as much as 9.9% intraday from Wednesday’s close before sharply paring its losses in the afternoon.
The Nasdaq dropped 1.3% Friday. The Dow lost half a percent, and S&P 500 shed 8-tenths percent. The S&P snapped its streak of five weeks of gains.
Worries about elevated valuations for mega-cap tech stocks were exacerbated by media reports saying options trading by Japan’s Softbank had inflated them.
Pence Wealth Management president Laila Pence isn’t put off by the pullbacks.
“I think today is an opportunistic day. I really think it’s more, I guess, something about Softbank and some things that happened, so it’s not
really about fundamentals. Nothing happened to these stocks in the last two days to deserve those kind of drops.”
Some analysts said the August jobs report showing a less-than-expected increase in hiring did little to push forward the stalled talks for a fresh stimulus package.
Back on Wall Street, shares of Broadcom rose 3%. The supplier of chips to Apple forecast fourth quarter revenue that topped analysts’ estimates.
Next week, investors will get the latest read on inflation at the consumer and wholesale levels.