The Dow Jones Industrial Average fell 600 points before rebounding.
On Friday, the market fell sharply, with the Dow Jones index plummeting to 600 points, and then making up for the losses in the afternoon. Because investors are shifting out of technology stocks and buying stocks that will benefit from the reopening of the economy.
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Key events
- On Friday, the Dow Jones Industrial Average fell 0.6%, exceeding 150 points, while the S&P 500 fell 0.8% and the tech savvy Nasdaq Composite fell 1.3%.
- After the release of a strong August employment report, stocks initially opened higher: according to data from the Department of Labor, the United States added 1.4 million jobs last month and the unemployment rate dropped to 8.4%.
- However, as technology stocks continued to face pressure after a sharp sell-off on Thursday, the market quickly turned negative: Facebook, Amazon, Microsoft, and Google parent company Alphabet fell again on Friday.
- At last Friday’s market low, the Dow Jones Industrial Average fell as much as 628 points, while the S&P 500 and Nasdaq indices fell by over 3% and 5% respectively.
- However, in the late afternoon, stocks rebounded as some investors seemed to have bought into the weak parts of the market.
- Despite the continuous rotation of technology stocks, stocks of companies benefiting from the reopening of the economy on Friday, including banks, cruise operators, airlines, and some retailers, led the stock market’s recovery.
TANGENT
The stock prices of Apple and Tesla fell more than 8% on the previous trading day, and after the two companies completed their stock split last week, their stock prices rose slightly on Friday.
Expert opinions
Senior Charlie Ripley, an investment strategist at Allianz Investment Management, believes that “today’s employment report is another sign of exhausted labor market recovery and should send a signal to lawmakers that another round of fiscal stimulus measures is needed to put the economic recovery on track
market background
Prior to Friday’s volatile trading day, Wall Street had already experienced a significant sell-off: the market plummeted on Thursday, marking the worst day since June, the stock market fell from record highs, and technology stocks plummeted. The Dow Jones Industrial Average fell 2.8%, a drop of over 800 points, the S&P Index fell 3.5%, and the Nasdaq Index fell 5%. In the past few months, stocks of large technology companies have played an important role in leading the market rebound. On Thursday, stocks of large tech companies dragged down the market, and tech stocks experienced their worst day since March.
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