Stock Market's Selloff Continues

Thursday's rout extends into Friday
By Newser Editors,  Newser Staff
Posted Sep 4, 2020 10:46 AM CDT
Stock Market's Selloff Continues
The Wall St. street sign is framed by American flags flying outside the New York Stock Exchange in New York.   (AP Photo/Mary Altaffer, File)

(Newser) – If you were hoping Wall Street would rebound on Friday from Thursday's big selloff, then you might want to skip the financial news this morning. Around midday, it was clear that the rout was continuing: The Dow was down about 580 points, or 2%; the S&P 500 was down 86 points, also 2%; and the Nasdaq was bringing up the rear again, down more than 390 points, or more than 3%. Once again, tech stocks (Nasdaq is heavy with tech) were suffering and blamed for the worst of the day's plunge, reports CNBC.

As of Friday afternoon, Apple shares were down 7%, Facebook and Amazon 6%, and Microsoft and Google parent Alphabet 4%. In the bigger picture, all five remained up for the year, notes the Wall Street Journal. Again, most analysts didn't seem too fazed by the downturn. “We’ve had excessive valuations in the markets lately—particularly in the tech sector—and that needed to be corrected to some degree,” Scott Knapp of CUNA Mutual Group tells CNBC. “One needs to look no further than the recent irrational run-up in Tesla and Apple share prices after both companies announced a stock split to see overexuberance, especially among retail investors.” (Read more stock market stories.)

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