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