Nasdaq Decline Seen As Digestion

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as the Nasdaq decline seen as digestion. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Stock futures fall with market set to continue technology-led sell-off

U.S. stock futures moved lower in overnight trading and pointed to losses at the open on Wednesday, as the technology-led stock rout continues to pressure financial markets. Dow futures dropped 230 points. S&P 500 and Nasdaq 100 futures fell 0.6% and 0.75%, respectively. Disappointing coronavirus vaccine news also pressured the futures market on Tuesday.

The S&P 500 (SPY) rose +2.02% today. All 11 sectors landed in positive territory as shown below in the sector graph. Gains ranged from +3.26% to less than 1%.

The Dow Jones index jumped +439 points (+1.60%) to close at 27,940. The Nasdaq added +293 points (+2.71%) to settle at 11,141.

Nasdaq Decline Seen As Digestion

Stocks finished solidly higher Wednesday rebounding from a recent string of sharp drops.

Shares of Tesla, which had their single worst day ever on Tuesday dropping 21%, ended Wednesday’s session up more than 10% after a late-day surge. Apple, which lost more than 6% in the previous session, was up by 4%.

Those two stocks, along with Microsoft, Amazon, Alphabet and Facebook, lost $1 trillion in market value over the last three days. All six rebounded Wednesday.

“I think of this rout not so much as a correction, but as a digestion given that the Nasdaq Composite rose more than 60% from its March bottom in the course of less than six months. All in all, I think this is a healthy period of consolidation after a dramatic run-up.” said Kristina Hooper, chief global market strategist at Invesco.

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

Download our new Handy ETF Guide

Subscribe to get our free weekly newsletter by email.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

9/9/20

S&P 500 Sector Graph

Nasdaq Decline Seen As Digestion

S&P 500 (SPY)

Nasdaq Decline Seen As Digestion

Communication Services (XLC)

Nasdaq Decline Seen As Digestion

Consumer Discretionary (XLY)

Nasdaq Decline Seen As Digestion

Episode 1: Basic Investment Strategy – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 1: Basic Investment Strategy Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).

Consumer Staples (XLP)

Nasdaq Decline Seen As Digestion

Energy (XLE)

Nasdaq Decline Seen As Digestion

Financials (XLF)

Nasdaq Decline Seen As Digestion

Real Estate (XLRE)

Episode 2: Building a Diversified Portfolio – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 2: Building a Diversified Portfolio In this episode, I go over 5 stocks to build a diversified portfolio on. These are 5 stocks to hold for the long term in a retirement account such as a Roth or traditional IRA account.

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Nasdaq Decline Seen As Digestion

Episode 3: 6 Investing Rules for Individual Investors – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 3: 6 Investing Rules for Individual Investors In this episode I discuss 6 investing rules for the individual investor that is in charge of their own retirement account.

Utilities (XLU)

S&P 500 Sector Heat Map

 

Leave a Reply

Your email address will not be published. Required fields are marked *