Tech

US stock market: Biggest weekly loss since March – bad numbers for tech companies

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Disappointing quarterly reports from well-known tech giants like Apple and Facebook weighed on the US stock exchanges on Friday. In addition, the new corona infections, which have triggered sharp price drops since Monday, continue to cause concern. The at times heavy daily losses in the Dow Jones Industrial fell sharply in the last hour of trading, however.



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Ultimately, the Wall Street Index went out of trading at a moderate discount of 0.59 percent to 26,501.60 points, after having lost almost 2 percent at times. The minus since the beginning of the week amounts to 6.5 percent, his monthly loss to 4.6 percent. The Dow had not slumped so strongly since March, on a weekly or monthly basis.

The market-wide S&P 500 fell 1.21 percent to 3,269.96 points on Friday. The Nasdaq 100 lost 2.62 percent to 11,052.95 meters and thus lost 5.5 percent in the past five trading days. This also means the biggest loss for the Nasdaq selection index since March. The monthly minus adds up to a more moderate 3.2 percent.

Better-than-expected economic data initially only had a positive effect at the start of trading and dampened losses. The business climate in the important economic region of Chicago deteriorated less than expected in October. In September, incomes and consumer spending also rose faster than forecast.

On the corporate side, Apple was the main disappointment: The delayed market launch of the iPhone 12 broke the tech heavyweight down in earnings last quarter. For the success-used share, which had only climbed to a record high after a share split in early September, it fell 5.6 percent at the end of the Dow. In the year to date, however, there has been an increase of 50 percent.

Facebook sagged 6.3 percent at the end of the S&P 100. Although the business of the social network benefited from the fact that more companies were relying on digital platforms during the Corona crisis, Facebook also warned of considerable uncertainty in the coming year. Among other things, reference was made to the unforeseeable development in the advertising business due to the pandemic.

The world’s largest online retailer Amazon is also one of the beneficiaries of the Corona crisis and reported a great deal because the trend towards shopping on the Internet continues. The shares gave up 5.5 percent. Since the beginning of the year, they have already done extremely well with a price increase of around 70 percent.

There was a particularly steep downward trend for the papers from Twitter with a discount of around 21 percent, making them the largest daily loss since 2014. The short message service gained only one million new users in the past quarter, despite the great attention it received from the US election campaign. That was a huge disappointment for investors.

Alphabet shares, on the other hand, jumped 3.8 percent. Booming advertising income and a strong cloud business ensured a leap in profits for the Google parent company in the third quarter, despite the corona pandemic.

The euro was trading at $ 1.1644 at the close of Wall Street. The European Central Bank previously set the reference rate in Frankfurt at 1.1698 (Thursday: 1.1704) dollars. The dollar cost 0.8549 (0.8544) euros. On the US bond market, the futures contract for ten-year Treasuries (T-Note Future) lost 0.24 percent to 138.13 points. The yield on the ten-year bond was 0.875 percent.