New York (AFP) – The depression that hit the New York Stock Exchange since the beginning of October was worsening on Tuesday with a new plunge in technology companies and increased tensions in the retail sector.
Around 16:30 GMT, the index of Wall Street, the Dow Jones Industrial Average, dropped 1.90% to 24,542.79 points after losing up to 2.39% minutes before.
The Nasdaq index, with strong technological color, dropped 1.36% to 6,932.68 points, and the broad-based S & P 500 index 1.47% to 2,651.29 points.
The Wall Street indices erased all of their gains in 2018, with the exception of the Nasdaq, which limited its losses in exchange.
In this week of Thanksgiving when market fluctuations are accentuated because of the low volume of trade, the indexes posted their highest volatility since the beginning of the month.
"Technology companies continue to suffer in the context of slowing sales prospects for these groups that are very expensive on the stock market, concerns about their management and the decline in production," commented analysts Nasdaq.
Symbol of the fall of these giants: Apple.
The maker of the iPhone plunged more than 22% since its October highs, cornered by a succession of ratings analysts downgrading their forecasts for sales of the brand's flagship phone or its course of Stock market in the weeks or months to come.
The latest, that of Goldman Sachs on Tuesday that lowered its outlook on the stock price, three weeks after the company has unveiled in its quarterly results prospects disappointing iPhone sales.
In addition to the Apple brand, the other tech stars of "FAANG" have plummeted since their recent highs, Facebook 40%, Amazon 29%, Netflix 37%, and Alphabet (parent company of Google) 21%.
"There is a real review of tech companies as a whole," said analysts Charles Schwab.
– Slower growth –
"They are now the victims of massive sales after being massively bought," observed Patrick O'Hare briefing.
"Concerns about a general slowdown, a high valuation, and a harsher regulatory environment weigh in," he added.
After having led Wall Street to historic highs this year, they now go through a very tumultuous autumn, taking all sectors, because of their weight.
The semiconductor sector, the driving force behind the surge in indexes in recent months, is also among the victims of this widespread slowdown in techs.
The biggest drop is that of Nvidia which has dropped 25% since the publication of disappointing quarterly results Friday.
The price resumed suddenly, however, Tuesday after a note from a firm whose analyzes are generally noticed on Wall Street, calling to buy the title.
In any case, the continuing fall of the tech sector is likely to relaunch the questions about a possible downturn in growth.
These fears have also "crossed the doors of the US central bank" (Fed), said Karl Haeling of LBBW.
"Recent comments suggest that she sees many risks developing for growth," he added.
The new Fed vice president, Richard Clarida, said Friday that global growth is showing signs of slowing down and that this could significantly affect the US economy.
In this climate of increased fears, mass-market groups made things worse after the publication of their quarterly results: Target dipped by 8.58%, Kohl's by 9.29%, and Lowe's by 2.77%.
"The reasons are diverse but include the fear of pressure on margins, high inventories, lower sales than expected on a comparable basis," said Patrick O'Hare of Briefing.