Back on February 23, I wrote a post with the headline “Everything is down today” and added that while I wasn’t buying everything on the dip I was doing some selective nibbling.
Today’s market looks almost exactly the same–if a bit more so because this drop is coming after recent weakness.
As of 3 p.m. Ne York time, the Standard & Poor’s 500 was down 1.10% and the Dow Jones Industrial Average was lower by 0.97%. The NASDAQ Composite had taken a bigger hit with a loss of 1.70% and the small cap Russell 2000 was off 2.97%.
Pretty much everywhere you looked today, you saw red.
Cyclicals that have been doing well recently are off. DuPont (DD) is down 2.70%.
Vaccine recovery stocks are down. American Airlines (AAL) for example, was lower by 5.19%. MGM Resorts International (MGM) was off 5.65%.
Speculative SPAC IPOs such as Quantum Solutions (QS) were down 10.31%.
Stalwarts such as Berkshire Hathaway (BRK-B) had dropped 2.29%.
Tech momentum favorites such as PayPal (PYPL) and Twilio (TWLO) were down 6.41% and 7.16%, respectively.
Chip stocks, one of the starring sectors of 2021, were selling lower with Taiwan Semicondcuctor Manufacturing (TSM) off 5.41%, Infineon (IFNNY) lower by 7.16%, and Marvel Technology Group (MRVL) dropping 10.32%.
Big tech stocks were down but actually fared relatively well in the plunge with Apple (AAPL) down 1.54%, Amazon (AMZN) off 0.60%, and Microsoft (MSFT) lower by 0.52%. It’s by no means a proven thesis, but certainly one worth entertaining: In the 2021 market many investors and traders may have decided that big tech is a relative safe haven among stocks. Which would be ironic given the multiples on these shares–but still possible if investors figure that they can’t lose with Amazon and Apple in the long run.