Wall Street fell on Tuesday as investors feared that mega-cap tech stocks may be overvalued after weeks of outperformance, pushing the broader market closer to correction territory. All three major indices declined for the third straight session, with the tech-heavy Nasdaq falling 10%. By the end of Tuesday's session, shares of Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Facebook (NASDAQ: FB), Google (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), and Netflix (NASDAQ: NFLX) were each off their recent highs by at least 3%. Electric carmaker Tesla (NASDAQ: TSLA) shares dropped their most since March's coronavirus pandemic sell-off, sinking over 21% after the company was excluded from the S&P 500 Index.
Here's who the market settled to start the shortened trading week:
S&P 500 Index (NYSE: SPY): -2.78% or -92.12 points to 3,331.84
Dow Jones Industrial Average (NYSE: DIA): -2.25% or -632.42 points to 27,500.89
Nasdaq Composite Index (NASDAQ: QQQ): -4.11% or -465.44 points to 10,847.69
For Major Stock News, electric carmaker Nikola (NASDAQ: NKLA) has signed a strategic partnership with General Motors (NYSE: GM). Big banks--Bank of America (NYSE: BAC), Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), JPMorgan (NYSE: JPM), Morgan Stanley (NYSE: MS) and Wells Fargo (NYSE: WFC)--fell alongside bond yields as Wall Street led a broad sell-off. Semiconductor stocks--Applied Materials (NASDAQ: AMAT), KLA Corporation (NASDAQ: KLAC), LAM Research (NASDAQ: LRCX), Micron Technology (NASDAQ: MU) and Nvidia (NASDAQ: NVDA)--all declined after the U.S. Department of Defense announced that it may blacklist China's largest chipmaker SIMC.
For Sector Performance, every industry fell amid Tuesday's broad market sell off. The negative performance losses were as follows: Information Technology -4.59%, Energy -3.71%, Financials -2.59%, Communication Services -2.40%, Consumer Discretionary -2.09%, Materials -2.07%, Consumer Staples -2.07%, Industrials -1.93%, Health Care -1.68%, Real Estate -1.28% and Utilities -0.59%.
For Commodities and Currency, the U.S. Dollar (NYSE: UUP) rose to a multi-week high on Tuesday as the Sterling came under pressure by renewed worries of a no-deal Brexit. Gold (NYSE: GLD) prices also rebounded from their recent declines as the coronavirus pandemic continues to be a major investment risk. Spot gold rose 0.4% to $1,936.87 per ounce, while futures settled up 0.5% at $1,943.20 per ounce. Crude oil futures plummeted to their lowest levels since June also due to global COVID-19 concerns. International benchmark Brent Crude (NYSE: BNO) slipped more than 5.3% to close at $39.78, while West Texas Intermediate (NYSE: USO) fell 7.6% to settle at $36.76 per barrel.
For Wednesday, investors will turn to fresh data on job opening numbers.