S&P 500 Dives 120 Points: COVID-19 Cases Surge, Sending Tech Stocks Back Into Correction
The S&P 500 index (SNPINDEX: ^GSPC) fell a sharp 3.5% on Oct. 28, one of the worst days in months in a week that's seen stocks close lower every day. So far this week, the index of over 500 stocks that represent some 80% of U.S. stock market value is down more than 5.6%.
Today's sell-off is the product of the same thing that's had investors on edge for the past several days: a resurgent coronavirus pandemic. More than 72,000 new COVID-19 cases were reported in the U.S. over the past 24 hours, marking the continued trend higher over the past couple of weeks, with the 7-day moving average in the U.S. now at the highest levels since the virus began spreading in the country. Overseas, Germany and France are taking steps to reduce the spread of the disease, and investors expect that some U.S. states could take similar actions.
Today's brutal sell-off was particularly notable at the top of the index. Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), and Facebook (NASDAQ: FB) shares all fell 5% or more. The Technology Select Sector SPDR ETF (NYSEMKT: XLK) fell 4%, and is down 12% since the September peak, back into correction territory.
Source Fool.com
