Stocks Just Suffered Their Worst Loss in Months

U.S. stocks plunged to their worst loss in eight months on Wednesday as technology companies continued to drop.

The Dow suffered its worst day since February on Wednesday — https://www.investing.com/news/stock-market-news/stocks--dow-drops-800-points-as-tech-wreck-rate-fears-trigger-bloodbath-1639398

U.S. stocks dropped sharply on Wednesday as a massive selloff in the biggest tech stocks has driven markets this year.

The Dow plunged 831 points, losing 3.15 percent of its value. It was the second-biggest drop of the year for the Dow, which on Feb. 5 lost over 1,100 points in a single trading session.

A particularly sharp decline was observed in the high-tech sector:

Amazon’s paper fell by 6.2%

Apple — by 4.63%

Netflix — by 8.4%

Facebook — by 4.1%

Alphabet — by 4.6%

Microsoft-by 5.4%.

Brad McMillan, chief investment officer at Commonwealth Financial Network, characterized the market’s decline as “normal volatility” and said stocks were “past due for a pullback.”

What caused the fall?

Nervousness had been building for days on Wall Street and here are some facts which caused the panic:

US markets have a trade war edge over China, which is compounded by Hacked Supermicro Hardware Scandal — A major U.S. telecommunications company discovered manipulated hardware from Super Micro Computer Inc. in its network and removed it in August, fresh evidence of tampering in China of critical technology components bound for the U.S., according to a security expert working for the telecom company.

The Impact of a FED Interest Rate Hike — The Fed has raised interest rates three times this year and is largely expected to hike once more before year-end.

— The Fed has raised interest rates three times this year and is largely expected to hike once more before year-end. China holds $1.17 trillion of U.S. government debt- As the United States and China inch closer to a full-fledged trade war, economists and investors worry about worst-case scenarios that could impact the global economy — and America.

“We don’t know who is to blame here; it’s a little like trying to find what or who is responsible for the dangerous hurricane in Florida today,” says Chris Rupkey, chief financial economist at MUFG, Tokyo-based global bank with offices in New York. “But make no mistake about it, the stock market decline, triggered perhaps by rising bond yields, is just as dangerous.”

HyperQuant vision

1. A sea of red washed over not only Wall Street but Cryptocurrency market