Updated 2 months ago
Dow Falls Nearly 400 Points. Everyone Is Taking Profits.
What started as a quiet Friday in the stock market is quickly turning into another selloff.
The Dow dropped 395 points, or 1%, a reflection of the fact that it isn’t just the technology sector dropping. The S&P 500 and Nasdaq were each down 0.5%.
For tech, the main problem is that the Nasdaq had run up double digits for the year coming into this week, so investors needed to take profits by selling.
For the Dow, it had popped for a few days this week, but now investors are taking profits there, too.
It isn’t helping anything — tech or non-tech — that bond yields are up a bit from a few hours ago. News hit the wires that President Biden’s family is discussing having him bow out of the election. That might, for the moment, increase the odds of a Trump victory, which comes with the possibility of reduced personal taxes and more inflation. The resulting tick higher in bond yields is weighing on equity valuations.
