Stocks drop day after election rally; Nasdaq down 4%
SPY•U.S. stocks fell sharply a day after a post-election rally, with the Nasdaq down more than 4% and the S&P 500 and Dow each off more than 2%. Technology led declines, while Qualcomm fell more than 11% after a disappointing quarterly report.
1. Technology leads declines
The three major U.S. stock indexes fell sharply, with the Nasdaq down more than 4%, its lowest level since April. All S&P 500 stocks were lower, and technology was the biggest percentage decliner, down about 5%.
2. Chips and Qualcomm slide
An index of semiconductor stocks fell more than 8%. Qualcomm dropped more than 11% after a disappointing quarterly report, while the Cboe volatility index rose. Bruce Zaro of Granite Wealth Management said enthusiasm from Wednesday had been revisited, with semiconductor and data center stocks under pressure.
3. Other markets
The STOXX 600 reversed course and was down about 0.5%. The dollar was little changed, gold rose more than 1%, U.S. crude gained about 2%, bitcoin fell more than 4%, and the 10-year Treasury yield dipped to about 4.83%.
