Wall Street Plunges Sharply, Weighed Down by the Tech Sector
The three main Wall Street indices closed with significant losses on Friday, as a wave of market selling even took down the tech giants known as the “Magnificent Seven.”
Without any major economic data and with the famous Santa Claus Rally—historically known to boost stocks in the final five days of the year and the first two of the following—yet to materialize, investors chose to lock in profits.
The Dow Jones Industrial Average, which tracks 30 major companies, dropped 0.77% to 42,992.21 points. The S&P 500, composed of the market’s most valuable companies, fell 1.11% to 5,970.84 points. The Nasdaq slid 1.49% to 19,722.03 points.
Main Movers
Among the major tech companies that have propelled Wall Street throughout the year, losses were widespread. Tesla shares were the most affected, dropping 4.95%, followed by Nvidia, the AI giant, which lost 2.09%.
Today, it seems there is considerable profit-taking across the board. We’ve seen more than two years of a strong bull market, so this isn’t surprising. Despite the sharp declines, the week ended positively for both tech stocks and the indices. The Dow Jones gained a modest 0.35% for the week, while the S&P 500 rose 0.67%, and the Nasdaq Composite increased by 0.76%.
Geopolitical Outlook
In major geopolitical news, the World Health Organization urged China to share COVID-19 origin data. The World Health Organization (WHO) has told China to share data on the origin of COVID-19, five years after the global pandemic that claimed millions of lives and devastated economies and healthcare systems.
“We continue to call on China to share data and provide access so we can understand the origins of COVID-19. This is both a moral and scientific imperative,” said the WHO.
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