ASX to slide; Tech rout smashes Wall Street; Tesla plunges 9pc

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US stocks fell, poised to record their worst day since June, as investors bailed on technology stocks after their stunning rally.

“In the absence of a specific catalyst, it’s easy to classify today’s swoon as profit-taking,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

“Valuation is a lousy market-timing signal on any given day, but in general, higher valuations leave stocks at higher risk as they inevitably attract fewer buyers and are more susceptible to sellers and short-sellers,” Mr Zaccarelli also said.

“We don’t believe the bull market is going to end any time soon, but a healthy pullback or even a correction is part of all bull markets.”

At the close, the Dow was down 808 points or 2.8%; the S&P 500 fell 3.5% and the Nasdaq was 5% lower. Each of the benchmarks pared some earlier losses into the close.

ASX futures were down 121 points or 2% to 5991 near 6.10am AEST. The local currency shed 0.9% to US72.75¢.

On Wall Street, Apple paced the losses among the mega techs with a 7.5% drop; Microsoft fell 6.3%. Amazon and Alphabet were more than 5.2% lower, Facebook and Netflix were more than 4.4% lower. Atlassian shed 5.8%. Telsa fell 8.8%.

Market highlights

ASX futures down 121 points or 2% to 5991 near 6.10am AEST

  • AUD -0.9 to 72.75 US cents
  • On Wall St: Dow -2.8% S&P 500 -3.5% Nasdaq -5%
  • In Europe: Stoxx 50 -1% FTSE -1.5% CAC -0.4% DAX -1.4%
  • Spot gold -0.7% to $US1929.74/oz near 1pm New York time
  • Brent crude -1% to $US43.97 a barrel
  • US oil -0.7% to $US41.23 a barrel
  • Iron ore +2.1% to $US129.92 a tonne
  • 2-year yield: US 0.12% Australia 0.23%
  • 5-year yield: US 0.23% Australia 0.38%
  • 10-year yield: US 0.62% Australia 0.90% Germany -0.49%
  • US prices near 1pm New York time

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