Tech Stocks Lead Losses on Wall Street, NASDAQ 100 Extends Downward Rally
U.S. shares edged lower on Thursday, once again weighed down by technology sector following bearish analyst research. The Nasdaq-100 that tracks the performance of the 100 largest companies trading on the Nasdaq Composite Index dropped more than 1 percent.
Shares of Google’s parent Alphabet fell nearly 2 percent after Canaccord Genuity downgraded its rating of the stock to “hold,” from “buy.”
Meanwhile, Shares of Apple dropped more than 1.4 percent as analyst Mark Moskowitz reported that Apple is near the peak valuation levels in its iPhone 6 cycle. The Barclays’ analyst said Apple shares may experience “a bumpy ride lower” if the prospects for a mega sales cycle diminish for its next smartphone.
The downgrade triggered a broader tech selloff and caused investors to take profits on the stock market’s recent champion sector. Technology stocks had risen 16.7 percent this year, far outperforming other sectors.
Shares of other major tech company found themselves in the red, including Facebook Inc. (down 1.53 percent), Amazon.com Inc. (down more than 2 percent) and Netflix (down 1.73%).
Sell Stop at 5660.00, Take profit at 5610.00, Stop loss at 5685.00