The Dow Jones Industrial Average and the Standard & Poor’s 500 fell sharply on Tuesday, as stocks of some of the most popular technology companies in the US and around the world dropped.
The Dow Jones Industrial Average (.DJI) was down 551 points at 24,465, after falling to a record low of 651. The Standard & Poor’s 500 Index also fell 1.9% to 2,442.88 points. The Nasdaq Composite Index fell 1.7% to 6908.81 points.
Both The Dow Jones and Nasdaq fell more than 2% in today’s trading session lows. This comes after the early statements of the founders of some major companies in the main indicators, who stated that “stocks are still expensive.”
Shares in Kohl’s, L Brands and Macy’s fell 9.2%, 17.7% and 3.4%, respectively. This follows a sharp drop in retail sales ahead of the holiday shopping season, a critical time of the year for these companies.
Stocks fell sharply last month amid rising fears of interest rate hikes, slowing economic growth and global trade tensions. Tuesday’s declines came after shares of major FAANG companies – Facebook, Amazon, Apple, Netflix and Google Alphabet – plunged more than 20% from a 52-week high. Apple also suffered from the drop in stock prices as investors worried about slower sales of the company’s flagship products, especially iPhones. Goldman Sachs recently cut its price target on Apple, adding that in addition to the weak demand for Apple products in China, it seems that the balance of price and features in the iPhone XR may not have been good enough.
Key indexes were also under pressure with heavy losses in crude oil, as WTI futures fell more than 6% on Tuesday amid fears of a global supply rally. The decline in crude oil led the Standard & Poor’s 500 index to fall by 3.3%, being the worst performer in the index.
Boeing shares fell 1% on Tuesday after the company canceled a conference call with airlines to discuss the 737 MAX. Last month, a 737 MAX plane crashed and killed all 189 passengers.