S&P 500 tumbles under 5100 as tech giants drag down the market
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The S&P 500 index fell back below the 5100 level on Tuesday as major technology companies led the decline. The index ended the day down 1.2%, led by declines in Apple, Microsoft, and Amazon. The Nasdaq Composite also fell sharply, dropping 2.1% as tech stocks continued to sell off.
The decline in tech stocks comes amid concerns about the impact of the novel coronavirus on the global economy. Apple, Microsoft, and Amazon are among the most vulnerable to disruptions in the global supply chain, and investors are worried that the virus could hurt their earnings. The tech sector has been one of the best performers in recent years, and its decline is a sign that investors are growing more cautious about the market.
Despite the sell-off in tech stocks, the broader market was able to hold on to some of its gains from earlier in the week. The Dow Jones Industrial Average rose slightly, led by gains in Boeing and Caterpillar. The Dow is now up about 2% for the week, while the S&P 500 is up about 1%. However, the Nasdaq is still down about 1% for the week.
The market is likely to remain volatile in the near term as investors try to assess the impact of the coronavirus on the global economy. The tech sector is likely to remain under pressure until there is more clarity on the virus's impact. The broader market could continue to hold on to some of its gains, but it is likely to see some pullbacks as well.
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