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The poor performance of technological giants reversed stock markets and canceled earnings by 2018.
The stock of 30 Dow Jones shares dropped by 551.80 points to 24,465.64, while the S & P 500 fell by 1.8% to 2,641.89 points. Dow and S & P 500 grew 1.2% and 0.6% respectively by 2018, starting Tuesday. At the same time, the Nasdaq Composite also fell 1.7 percent to 6908.82, the lowest level since February, although it managed to keep a small profit for 2018.
The NYSE FANG + index, which includes Tesla (TSLA), Twitter (TWTR) and Nvidia (NVDA), in addition to the FAANG shares, fell below the 50-day moving average on Oct. 5. A month later, the average value of the one-day index fell below its 200-day dense average – a technical signal called "cross-death" by technical dealers, suggesting a high probability of further loss of momentum and decline.
This Monday (19/11) the Dow index has fallen by 395 points. Yesterday, shares of Facebook, Amazon, Apple, Netflix and Google-Alphabet closed lower, 20% lower than their 52-week heights. The S & P 500 and Nasdaq declined 1.7% and 3% respectively on Monday, while the Dow Jones index fell 1.4%.
Apple has led to a decline in technology stocks. Investors worry that sales of iPhone's leading product will slow down. For that reason, Goldman Sachs lowered its price yesterday, noting that "in addition to the weak demand for Apple products in China … it also seems that the cost-benefit ratio of the iPhone XR may not be enough."
Yesterday Apple's shares had already fallen by 4% after the Wall Street Journal reported that the company had cut production orders for the past three weeks for all three iPhone models released in September. The fall was 5% yesterday.
Facebook shares also fell since last week after the New York Times report questioned the company's fluidity of handling the criticism of the Cambridge Analytics scandal in the US press and congress.
Only Google showed a slight recovery in the post-closure negotiations, closing slightly higher (0.29%).
Over the past 50 days, Facebook, Netflix, and Google Alphabet have fallen below their 200-day average.
In addition to technology companies, weaker results and forecasts of retailers have contributed to the decline. On both markets, Amazon also closed 1.1%, ending the day by 26.7% below its record high of September 4 at $ 2,039.51.