Big Tech stocks close out a 'nightmare' September

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September has been a tough month for traders overall, but a perfect storm left big tech stocks, a sector that normally leads the market, with losses.

The fourth quarter of 2020 will likely be choppy, Ives said, due to the U.S. election, a potential Covid-19 vaccine or surge in infections and how companies' third quarter earnings go.

"There's still opportunity for a rally, but a lot of it's going to hinge on [third-quarter] numbers," Ives added. Still, he said he's optimistic that "the fundamental drivers are going to be much stronger than the Street is anticipating." September's drop is also not an immediate cause for concern. Krosby said she views the decline as proof the market is working as it should.

"You need to have a sense that the market is working, that the mechanics of the market is working," Krosby said. "There's something about a market that keeps going up. The reaction is, 'is this 1999 all over again?' because it conjures up a period of a fantasy that ended very badly." "Again, it's healthy to see the market come down and burn off the frost. And it's a process," she added.

 

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