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Nasdaq At Record as Investors Bet on Big Tech to Weather Virus Storm; Dow Falls

Published 07/09/2020, 04:00 PM
Updated 07/09/2020, 04:05 PM

By Yasin Ebrahim

Investing.com – The Nasdaq closed at a record high for the second straight day Thursday as investors continued to seek refuge in megacap tech stocks at a time when the spread of the coronavirus threatens a V shape recovery.  

The S&P 500 lost 0.52%, while the Nasdaq Composite rose 0.63% to close at record hghs, and the Dow Jones Industrial Average fell 1.38%.

Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and Amazon.com (NASDAQ:AMZN), the so-called Fab 5, which collectively make up about 40% of the Nasdaq, ended higher to help keep broader market losses in check.

Beyond tech, however, investors had to contend with losses in stocks tied to the progress of the economy amid rising Covid cases.

Total cases rose to about 3.05 million from 2.98 million yesterday, with the death toll rising to deaths 991 from 932, according to the Center for Disease Control. 

As the outbreak continues to hit key hotspots including Texas, Florida and California, Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases said states should opt to pause reopening measures rather than revert to a complete shut down.

"Rather than think in terms of reverting back down to a complete shutdown, I would think we need to get the states pausing in their opening process," Fauci said.

But that did little quash investor jitters of looming shutdowns that threatened to undo the economic progress seen recently.

The U.S. Department of Labor reported Thursday that initial jobless claims decreased by about 100,000 to 1.31 million in the week ended July 3, beating forecasts for a decline to 1.3 million.

Continuing claims fell 698,000 to 18.06 million, extending a trend of downside momentum that is "encouraging," Jefferies (NYSE:JEF) said. "Continuing claims are down 2.5 million over the past 4 weeks."

Energy led the selloff, paced by a decline oil prices as the pause of reopening measures in pockets of the U.S. offset signs of a recovery in gasoline demand seen a day earlier.

Financials were not far behind, falling 2% just days ahead of quarterly results from banks. The second-quarter earnings reports for a slew of Wall Street banks are likely to underscore a rough quarter amid rising loan loss provisions and weaker profit from lending activity weighed down by near-zero interest rates.

Elsewhere, AMC Networks (NASDAQ:AMCX) rallied as rumors swirled the company had hired Morgan Stanley (NYSE:MS) to explore a sale.

Latest comments

hie Guys how do you trade nasdaq
You think your untouchable with all that money. But also you can be blocked.
One of you guys keep spoiling the soup we don't like it and will take action.
except trump I have never seen any President of the world tweeting so much about stock market.
biden said he would teach manufacturing people to "code" after sending their jobs to china.. then proceeded to challenge somebody to a push up contest who questioned him, and then sniffed a few women and children
you may thinking i am joking, but all of these things have happened, on video... more than once
This is tongue-in-cheek, but retail investors should be allowed to invest in Robinhood. That’s a great tech company, right?? ;)
yeah, so the guy chose to focus on nasdaq 0.6% rise, not dow's 1.4% drop in the headline. good spin.
https://tiny.iavian.net/11s8z
OH NO DOW HAD A RED DAY NEAR ALL TIME HIGHS!!! MUST BE ALL THAT VIRUS FEARS WE HAVE BEEN TRYING TO CONVINCE PEOPLE OF!!!
Nasdaq is falling for sure !!! Big Techs are overvalued in pandemic ;/Apple , Microsoft , Tesla , Facebook , Amazon
Yes, they def are overvalued using normal valuation metrics, but you cannot put a price on scarcity value of growth companies given the Covid environment. Please provide us with alternate stock investment choices in growing companies. KO and PEP are even more highly valued vs the big techs. Everything else seems to be value traps and hope and trade plays. Wait until the PPP runs out and tens of thousands of people are canned at all the airlines, etc. UAL has already announced 36,000 firings. You think we should be buying it on hope that traveling will EVER be the same again...even after a SAFE vaccine is developed that not everyone will get? The travel industry will come back, but it will take many years, and it’s not like I’m gonna take multiple vacations to make up for the ones I didn’t get to take during Covid. Same for eating at restaurants. That revenue is gone forever.
politically correct investors ~ wow
.Com collapse 2.0
bahaha. investor betting on big tech. all those robinhood punks just blind long the nasdaq.
Guess punks are making money ... Smart
All the big tech stocks are in scores of ETFs which are being purchased by retail investors all over the world, incl QQQ, SPY, so it’s not just the Robinhood punks causing market craziness (well, maybe ex Hertz). Check out www.Robintrack.net, and you will see EXACTLY what they are buying in Robinhood, and when they are buying it. It’s a website not affiliated with Robinhood. ]]
Biggest Bubble Ever!
Its not invetors its fed behind and robinhooders
we need the fed now more than ever, they need to pump this thing, especially the DOW
That's a clear statement of part of the investment strategy of Robinhood:1. Buy on the dip.2. Buy Hertz.3. Buy option.3. Fed pumps up the market.4. You make money.Rinse and repeat. Day trading by new investors is gambling. If you think Jerome Powell isn't corrupted by Trump, like Mnuchin, I've got a bridge to show you.
Pump till?
Hide Joe hide!!!
these companies will end up sinking... can't float if the water around is fluxed away
POS DOW
🌷📈👌
We are heading towards the digital world, it’s not surprising those companies will make a lot money in the coming years.
Digital food printing 🤣🤣
Last earning cycle was muted. Regardless of what was reported, stocks mostly went up. I hope this cycle will be different and we will actually see some two sided action. But as JPOW has showed us - he can easily control trillion dollar markets with his printer.
why would you want two sided action rather than a continual upswing?
 Because that is how option traders make money. Volatility and delta swings.
it a bubble and you pump that index ??????
lmao..... does noone remember 2001...?
Yes this is much worse. Valuations are rudiculous. 2001 tech boom and bust was mostly dominated by IPOs. How many IPO’s are you seeing. This is criminal period.
 Exactly, Tesla is a good example. The most valuable company in the word when Toyota, VW, etc make millions of cars. People think that Tesla is a revolutionary thing... come on, VW has it's own line of electric cars and for what I've heard they are amazing (and cheaper). Basically all companies have their own electric cars line now so Tesla will no be the unique manufacturer in the world doing this to have such valuation.
it's hype. still mad I didn't invest in Tesla years ago though because even if it's hype it doesn't matter. Only reason I didn't invest was because my friend at the time who I saw ad the guy to "always *******me over" isbthe one that recommended it. Basically took something I was considering and guaranteed that I wouldn't invest. It hit $200+ just a few months after. Oh well, there will always be other companies trading at $2 today that will be $30+ in a year or 2.
What tech stocks can do magically, we have same laptop same smarthphone🤣🤣
😂
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