Tech stocks continued to tumble Tuesday following the largest sell-off in over five months last Friday. The Dow Jones Industrial Average slid 384 points down by another 1%, while the NASDAQ composite hit a 2.1% drop. The S&P 500 lost 1.6%.
Hot tech stocks took another hit with industry giants such as Microsoft, Amazon, Facebook, Google’s parent company Alphabet, and Zoom Video all seeing drops between 2% – 2.9%. Automaker Tesla also took a hit dropping 14% following its failure to be added to the S&P 500 by Friday’s closing bell.
Wall Street analysts attribute the losses to fears that the tech industry’s rush inflated valuations to unrealistic levels which they view as unsustainable. Friday’s losses broke five weeks of gains with the market reversals in the technology sector. Microsoft, Amazon, Apple and Facebook drove NASDAQ’s tech-heavy composite to its biggest losses since March. The Dow Jones reported its largest losses since June.
Ann Sullivan is a contributing staff writer covering national and world news topics. She brings dedicated experience having written international and domestic news, blogs, and web content for over 20 years. She’s also a published poet and graphic designer with degrees in Business and Graphic Communications and has been a music distributor, music industry sponsorship sales director and band manager.