The trigger for a seismic stock-market slump Thursday and Friday that has erased weeks of gains for a frothy U.S. stock market, may have been embattled investment firm SoftBank, according to a report by Financial Times .
The FT, quoted one investment banker as describing the options purchases that SoftBank made as “dangerous” bets on the market. On Thursday, the Dow Jones Industrial Average DJIA, -0.56% ended with a loss of 807.77 points, or 2.8%, at 28,292.73, after dropping more than 1,000 points at its session low. The S&P 500 index SPX, -0.81% closed 125.78 points lower, down 3.5%, at 3,455.06. The Nasdaq Composite COMP, -1.26% tumbled 598.34 points, or 5%, to end at 11,458.10. The declines marked the biggest one-day drops for all three indexes since June.
The Wall Street Journal wrote on Friday that SoftBank bought options tied to billions of dollars worth of individual tech stocks, which may have included bullish bets on Tesla TSLA, +2.78% and Apple AAPL, +0.06%.
No, you have to blame a bunch of Robin Hood teenagers with $300 worth accounts, for a $4 billion tech bubble.
no no no. they’re an insignificant fraction of the names they’re in - let alone the market but the fake fear is welcomed. a great contrarian signal to power the market higher
Little bounce early next week, and then the big sell-off. Get ready
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