(Bloomberg) — A selloff in the world’s largest technology companies hit stocks in the final stretch of a stellar year.
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In another session of slim trading volume — which tends to amplify moves — the S&P 500 lost 1.3% and the Nasdaq 100 slipped 1.5%. Every major industry fell, with Tesla Inc. and Nvidia Corp. leading losses in megacaps. That’s after a surge that saw the cohort of tech giants dubbed “Magnificent Seven” account for more than half of the US equity benchmark’s performance in 2024.
“I think Santa has already come, but that’s me. Have you seen the performance this year?” said Kenny Polcari at SlateStone Wealth. “It’s Friday, next week is another holiday-shortened week, volumes will be light, moves will be exaggerated. Don’t make any major investing decisions this week.”
To Steve Sosnick at Interactive Brokers, while today was shaping up to be a quiet holiday-season session, he’s been fielding more inquiries than expected.
“The best I can figure out is that there are large accounts, pension funds and the like, who need to rebalance their holdings before year-end,” he said.
Sosnick also noted that intraday trading suggests a large seller is active, with two successive “buy-the-dip” attempts in the S&P 500 failing at the 5,970 level.
“That is the sort of action that occurs when a rally attempt is squelched, causing the short-term speculators switch from buyers to sellers,” he concluded.
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