Wall Street fell sharply on Monday, washed away by a rush on technology stocks. The flagship S & P500 index has erased its gains in November.
Wall Street has just signed a bright red session. The US equity indices fell sharply on Monday at the close of a session marked by a fall in technology stocks in the wake of a new plunge by Apple and the semiconductor company Nvidia. According to final closing results, Wall Street's flagship index, the Dow Jones Industrial Average, dropped 1.56% to 25,017.44 points. The Nasdaq, with strong technological coloration, yielded 3.03% to 7,028.48 points. The broad S & P 500 index dropped 1.66% to 2,690.73 points, wiping out its gains in November.
"It was mainly a sinking of technology stocks," said Peter Cardillo of Spartan Capital. A prominent member of the rating, Apple on Monday sold off its stock market by dropping 3.96%, after an article in the Wall Street Journal explained that the maker of the iPhone had reduced orders for the production of its latest models. smartphones unveiled this year. The fear of a gloomy end to the year, already present for several weeks, has dropped the price of Apple more than 20% since its historic high of October 3. Apple CEO Tim Cook also said a regulation to regulate the high-tech and social media sector would be "inevitable" to protect user data, in an interview broadcast Sunday.
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Concern about Apple has affected the semiconductor industry. But it was mostly struggling in the wake of the financial results of one of their main members, Nvidia, late last week. Its price plummeted 12.0% Monday after already losing 18.7% Friday. All technology stocks suffered from all these concerns, like Netflix (-5.45%), Alphabet (parent company of Google, -3.82%), Amazon (-5.09%) and Facebook (-5.72%), the social network ending with 131.55 dollars at its lowest since February 2017. "There seems to be a revaluation of the stock market price of these companies with strong growth," said Sam Stovall of CFRA.
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The market also suffered from the contraction of a confidence index of US manufacturers for November, against a background of rising interest rates from the US central bank (Fed). "To put it simply, the real estate market is stagnating or even falling back," said Cardillo. The Fed's rate hikes increase the borrowing costs banks impose on households and businesses in the country, particularly on the real estate market. "We are almost certain to increase rates a little bit but it is against a very strong economy," said precisely on this subject the number two of the Fed's monetary committee, John Williams. In the bond market, the 10-year debt rate fell to 3.054% around 21.20 GMT, against 3.063% Friday at the close, and the 30-year to 3.313%, against 3.316% at the end of the previous week.
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