Tech slump sends stock market to its biggest loss since June

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Wall Street’s euphoria took a break Thursday, as steep losses in technology stocks dragged the rest of the market down with them.

Apple dropped 8%, Amazon lost 4.6% and Facebook gave back 3.8%. The Big Tech stocks have made massive gains this year.

“There’s really very little to justify other than euphoria,” said Mark Hackett, chief of investment research at Nationwide. The stock market has rallied this spring and summer after plunging in March as investors realized the economic toll the coronavirus pandemic was going to cause.Most of the rally has been on strong performances from tech stocks, but also a hope that the worst of the pandemic is in the past, despite rising infections in schools and the possibility of a second surge of infections in the fall. Huge amounts of support from the Federal Reserve and Congress have also helped bolster the economy.

The Dow Jones Industrial Average fell 807.77 points, or 2.8%, to 28,292.73. It was briefly down 1,000 points earlier. The day before, the Dow crossed 29,000 for the first time since February.

 

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