US tech sell-off worsens, crude oil rallies
The Nasdaq 100 Index’s two-day loss topped 3.3%, an abrupt turnaround after closing at a record on Thursday with a 21% gain for the year.
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Dubai: The rout in US technology shares worsened after spreading to Asia and Europe on concern the group had risen too far too quickly. The pound retreated as an embattled Theresa May fought to survive the fallout from the British general election.
The Nasdaq 100 Index’s two-day loss topped 3.3%, an abrupt turnaround after closing at a record on Thursday with a 21% gain for the year. Apple Inc. and Netflix Inc. lost at least 3.5%, while Samsung Electronics Co., ASML Holding NV and Tencent Holdings Ltd led declines in Europe and Asia. Energy shares rallied, mitigating losses in the S&P 500 Index, as crude topped $46 a barrel. Treasuries and the dollar were little changed.
The sudden slide in tech stocks, which had helped send global equities to repeated record levels this year, blindsided many investors after markets largely brushed aside last week’s trio of risk events. The question now is whether the drops represent merely a pause or a more fundamental crack in the US stock bull market.
“There’s a chance US internet technology stocks that have propelled a global stock rally will now serve as a buzz kill,” said Mitsuo Shimizu, deputy general manager at Japan Asia Securities in Tokyo.
Meanwhile, the drama continues in Washington. Attorney-general Jeff Sessions offered to speak to the Senate intelligence committee to answer questions about alleged Russian meddling in the 2016 presidential election. And the Federal Reserve is set to lift rates this week, leading a pack of central banks that are mostly nodding in the direction of removing ultra-accommodative policy. Bloomberg