Dow Plunges Over 800 Points as Investors Flee Tech
*By Kavitha Shastry*
U.S. stocks accelerated their losses Wednesday, with the Dow tumbling more than 800 points for its biggest point drop since February.
Shares of Amazon ($AMZN) and Microsoft ($MSFT) were down more than 4 percent late in the trading day, while Jack Dorsey's Twitter ($TWTR) and Square ($SQ) were both down more than 7 percent.
"Valuation is just coming to a bit more realistic levels in the tech sector," said John Petrides, Managing Director at Point View Wealth Management. "How many times have we spoken about tech being the driving sector for the market returns.
"Twenty-six percent of the S&P 500, the FAANG stocks equalling 45 percent of the Nasdaq ー you're having profit-taking there."
The sell-off adds to October's market losses ー the S&P 500 is now down five days in a row, its longest losing streak since before the 2016 election ー with investors worried about the impact of ongoing trade tensions and borrowing costs at seven-year highs.
While tech stocks were among Wednesday's biggest losers, high-end retailers also took a hit. France's LVMH warned it was seeing slower demand from Chinese consumers, an indication that tariffs from the U.S. were eating into discretionary budgets. Shares of Tiffany ($TIF), Michael Kors ($KORS), and Ralph Lauren ($RL) were all down.
The Nasdaq led losses among the broad market indexes, falling more than 3 percent. For the month, it's already down nearly 8 percent, its biggest monthly decline since January 2016.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.