The Nasdaq Composite experienced its largest daily decline since June on Thursday, as a sharp selloff in big tech pushed the index into correction territory. The Nasdaq-100 fell 6.36% on Thursday, marking a 15% drop from its October 6 high.
Apple nears Nvidia market capitalization as tech sector declines
While the broader technology sector faced significant pressure, Apple hit a new high on Thursday before finishing the session at $348.22. Apple shares have gained 28% this year, and fans are expected to begin lining up on Friday for the new $2,000 iPhone Duo. Online orders for the iPhone Duo currently extend months into the future.
The selloff extended across several major indices. The S&P 500 dropped 4.36%, falling 6.25% from its high last month, while the Dow Industrials fell 3.44%. The Dow is down 6% from the high reached on August 5. The S&P tech sector saw a 7% decline, which is 17% below the high reached on October 6, CNBC reported. Additionally, the Russell 2000 fell 4.5%, placing it 11% from the August high, and the NYSE Composite dropped 2.96%, leaving it 3.6% from its August high.
Jim Cramer warns of “bear market” amid tech selloff
Jim Cramer declared a “bear marketduring his analysis of the market's direction. Cramer provided an in-depth look at
the idea that the data center theme is falling apart,noting that capital has been moving into non-data center trades for some time. He characterized the Thursday action as
a torrentmoving out of big tech. Cramer suggested that
now when the smoke clears,” there could be an opportunity for stocks outside of the technology sector to perform well, CNBC reported.
Consumer staples fall while Constellation Brands rises
In the consumer staples sector, which CNBC’s Brandon Gomez noted investors often flock to during difficult times, the sector fell 0.7% on Thursday and is down 2.3% from its high. Within this sector, Constellation Brands rose nearly 28% in a month, while Walmart and Clorox both saw gains of 21%. Other companies mentioned in the consumer staples sector include Hershey, JM Smucker, Coca-Cola, and Altria.
Western Digital reported that it exceeded estimates for its fiscal first quarter, driven by favorable pricing and demand for data storage. However, its shares fell 5% in after-hours trading, following a 22% decline throughout October. Meanwhile, American Express is scheduled to release its quarterly earnings on Friday morning; its shares have dropped more than 6% over a three-month period and are 16% below the December high.
Credit default swap prices increase for major tech firms
Market volatility was also reflected in credit default swap prices over the last month. The price for CoreWeave increased by 50%, Amazon’s rose by 42%, Oracle’s increased by 23%, and Meta’s rose by 15%.
| Index | Thursday Change | Contextual Note |
|---|---|---|
| Nasdaq-100 | -6.36% | Off 15% from Oct. 6 high |
| S&P 500 | -4.36% | Down 6.25% from last month’s high |
| Dow Industrials | -3.44% | Down 6% from Aug. 5 high |
| Russell 2000 | -4.5% | 11% from August high |
| NYSE Composite | -2.96% | 3.6% from August high |
Earlier coverage: Nasdaq Plummets Into Correction Amid Tech Selloff