The market roller-coaster ride into the Labor Day weekend is confronting investors with fresh questions about the soundness of the technology-led advance in major stock indexes.last week after hitting a fresh high, led by Thursday’s record one-day decline in market value at Apple Inc. , the most-valuable U.S. listed company.
Few investors believe the late-week rout signals the end of a rally that has taken the Nasdaq to 43 record closes and pushed the S&P 500 up more than 6% for the year. The economy continues to show signs of improvement and with interest rates near record lows, the investor mantra that “there is no alternative” to purchasing the shares of major U.S. corporations remains very much intact.
Even so, the scale of the gains among major technology shares this year, the resulting rich valuations and the gobsmacking market capitalizations of many of these firms, raise the possibility of large share-price drawdowns this fall. The Nasdaq Composite is up 26% for the year. Swings in the shares of Alphabet Inc., Amazon.com Inc., Facebook Inc., Microsoft Corp. and others stand to accentuate expected volatility around the U.S.
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A surprising turnaround just before Nov 3........
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It’s funny how it happened right after the Apple split.
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