S&P 500 News: Amazon Leeds Big Tech Stock Sale-Off, Erasing Extensive Profits in Other Sectors


On the surface, Friday’s relatively flat finale S&P 500 Index (SNPINDEX: ^ SPX) It seems like it was a quiet day on Wall Street. Reality: It was another painfully volatile day in a volatile week for tech stocks, which fell enough to wipe out gains in almost every other sector.

Adventuress (NASDAQ: AMZN) Shares declined nearly 2%, leaving almost every tech stock with a market cap above $ 200 billion that closed lower at the end of the week. While tech was declining, every other sector except real estate increased in value, with industry and content sectors both having more than 1% to close the week. Fertilizer company Mosaic, Paper and packaging giant Avery Dennison, Mining giant Freeport-mcmoranAnd refiner Marathon Petroleum All led their fields with a high of 3% or more.

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Investors are moving from big tech stocks

Today’s tech share selloff continues a trend that saw the S&P 500 tech sector lose more than 11% of its value from the peak of the market last week. The S&P 500 easily underperformed the worst sector performance in that period, with the telecom and energy sector suffering a decline, including large investors. It is here that these areas (measured as) Energy Select Sector SPDR ETF, Technology Select Sector SPDR ETF, And Telecom Select Sector SPDR ETF) And complete index (as shown SPDR S&P 500 ETF Trust) Has performed since September 2, when the S&P reached its all-time high.

XLE chart

XLE data by YCharts

Sales have been in every sector since high, but the tech sector has driven the lion’s share of losses.

The sale of the tech sector has been wiped out with widespread gains almost everywhere.

Here’s how all sectors closed on Friday:

Xlp chart

XLP data by YCharts

The largest, most valuable companies in the US are large-scale technology companies, and as they move, therefore moves the broader market. In this way you can weaken a region, especially in a market in which almost all other sectors are higher and still barely finish.

Here’s more reference: The five largest tech companies on the S&P 500, Apple (NASDAQ: AAPL), Amazon (technically classified as a consumer goods retailer, but is just a technology company) Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGLE), And Facebook (NASDAQ: FB) The market had a combined market cap of around $ 6.9 trillion on Friday. The five largest nontech companies, Berkshire Hathaway, Walmart, Johnson and johnson, Procter and gamble, And JPMorgan Chase, Has a combined market cap of $ 1.9 trillion.

Tech companies, including the highly diversified S&P 500 index, have a wide impact on the US stock markets. This year the sector has extracted a large share of investors’ returns. Many of those investors have spent the last two weeks to gain in an uncertain economic environment as the coronovirus epidemic continues on the global economy.

Get used to instability

This has become a continuous decline, but it is the reality that stock investors must come to terms. Record volatility has been the hallmark of 2020, and this volatility is likely to remain with so many uncertainties – economic, political and health related – continuing to cast a long shadow over investors.

Tech has suffered a major loss in the last few weeks, but has been the best-performing sector in this and prior years so far. When we stay ahead and work becomes a big part of big technology, there is a possibility of a long-term return of outperformance. Share investors would do well to remember that before others get involved in the exodus of big technology.