The Dow today plummeted more than 400 points in another beating in the stock market today and the technology sector in particular.
Leading stocks weren’t spared, as many stocks in the IBD 50 fell sharply and the index found itself in a bear market.
The Nasdaq composite, which is 45% comprised of tech stocks, was hurt the most, off more than 2.6%. The composite undercut the prior week’s low, effectively killing hopes for a continued rebound. The Nasdaq is still above its Oct. 29 low.
At around 3 p.m. ET, the S&P 500 slid nearly 1.5% but was still above last week’s low. The Dow Jones industrial average also fell roughly 1.5%. The Russell 2000 lost 2%.
Volume was tracking just 2% lower on the Nasdaq compared with the same time Friday. Losing stocks led winners by more than a 3-to-1 ratio on the NYSE and Nasdaq.
A Short Trading Week On Wall Street
The Thanksgiving holiday means Wall Street has a short week, with a day off Thursday and a half session Friday. Because many traders are taking time off, the market’s week can be difficult to gauge.
While losses were broad, the bulk of selling was in technology, and software more than other areas. The iShares North American Tech Software ETF (IGV) plunged 5.3%; SPDR S&P Software Services (XSW) lost 5%. The Philadelphia semiconductor index took a 3% dive.
The epicenter of the sell-off is Apple (AAPL). The stock skidded 3.6% in about average volume on mounting concerns about demand for iPhones. Today, The Wall Street Journal reported that Apple has cut production for its three new iPhone models. The news also hurts the network of Apple’s components suppliers.
Monday’s better-performing sectors were mainly defensive. The SPDR Utilities ETF (XLU) was flat while SPDR Consumer Staples (XLP) and SPDR REIT (RWR) eased 0.2% and 0.4%, respectively.
Leading stocks of all stripes were under fire. The IBD 50 is more than 22% below its prior high. Any time an index falls more than 20%, it is regarded to be in a bear market. IBD’s own market outlook is that the market uptrend is under pressure. That leaves room for some exposure to stocks, but investors should limit their stock purchases.
Seventeen of its stocks were down more than 5%, and 13 more were down 3% to 5%. Square (SQ) tumbled more than 9%, falling below the 200-day moving average. HealthEquity (HQY) slid about 9% to its 200-day line. CyberArk (CYBR) plummeted about 8% as it pierced the 50-day line.
Twilio (TWLO) was removed from IBD Leaderboard after the stock hit the 7%-8% sell signal for the second time in a week.
