By now you’ve probably heard it, Jeff Bezos is the wealthiest man in the world after the latest move in shares of Amazon stock. But what has started out as a bull market for many NASDAQ Stocks has turned red by the end of the day. At one point today, all 3 major US indexes were taking a beating with many tech stocks leading the charge. Facebook earnings propelled the stock higher but by the end of the day, shares of the social media giant closed down 2.8% from the day’s high.
But Facebook wasn’t alone. Shares of Verzon stock closed the day lower, as well as Apple Inc. and even Tesla. “After Facebook earnings, people are getting jittery about valuations so there’s a rebalancing going on,” said Diane Jaffee, senior portfolio manager at TCW.
Google and Amazon also fell victim to the barrage of bearish trading. “These are the points where people take profits,” said Mark Kepner, managing director of sales and trading at Themis Trading. MasterCard, Twitter, and even PayPal also pared gains from earlier.
“There has been a marked divergence between Dow Transports and Dow Industrials and whenever this happens people like to reduce risk,” said Ian Winer, head of the equities division at Wedbush Securities. “And the best way to reduce risk right now is by selling overvalued tech stocks.”