Wall St posts third week of declines as tech slide drags on

Inc and Alphabet Inc which helped to fuel the market’s rally off the March lows were among the biggest drags on the S&P 500 and Nasdaq yesterday— Reuters pic

The decline marks the the first three-week losing streak for the benchmark index since last October.

Marble sculptures occupy the pediment above the New York Stock Exchange signage, Tuesday Aug. 25, 2020, in New York.

Last week, all three major USA stock indexes posted a second straight week of declines as investors sold tech-related names that had powered the S&P 500 to record highs in a dramatic rally from the March lows.

The major averages slumped for a third straight week after the Federal Reserve pledged to keep interest rates low for a long time but gave no new hints about any further stimulus measures.

Unofficially, the Dow Jones Industrial Average fell 249 points, or 0.89%, to 27,652.98, the S&P 500 lost 37.89 points, or 1.13%, to 3,319.12 and the Nasdaq Composite dropped 118.00 points, or 1.08%, to 10,792.28. Investors said it is essential that such aid arrives. "You'll get these technical bounce days when coronavirus cases spike up and money will move back into tech".

Also on the long list of concerns for markets is how the pandemic progresses, whether a vaccine for COVID-19 could indeed be available in early 2021 as many investors expect and what November's United States presidential election will do to the economy.

President Donald Trump's targeting of the Chinese tech industry has caused intermittent worries in the market about a possible retaliation against the USA industry.

US-listed Chinese companies traded mostly lower, with eight of the top 10 stocks by weight in the S&P US Listed China 50 index ending the day on a downbeat note.

On Friday, several tech stocks continued slipping. Apple was down 3.2 percent.

Also on the long list of concerns for markets is how the pandemic progresses, whether a vaccine for covid-19 could indeed be available in early 2021 as many investors expect and what effect November's US presidential election results will have on the economy.

The only data featured in the U.S. economic docket will be the University of Michigan's Consumer Sentiment Index.

Adding to concerns around a stalling recovery, the Labor Department's report showed the number of Americans filing new claims for unemployment benefits fell last week, but remained perched at extremely high levels.

Volatility has the potential to be higher, with Friday marking the quarterly expiration of USA stock options, stock index futures and index option contracts, known as "quadruple witching". Brent crude, the global standard, fell 0.8% to $42.95 per barrel.



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