- The Nasdaq dropped 9.2 percent in October, its worst month since November 2008.
- Amazon led the index’s slide, plunging 20 percent, while Alphabet fell 9.7 percent.
Technology stocks just capped off their worst month since the depths of the recession a decade ago.
The Nasdaq plunged 9.2 percent in October, its steepest monthly drop since a 10.8 percent decline in November 2008. At that time the financial markets were in crisis and the tech-heavy Nasdaq was at the tail end of a six-month slump, during which the index lost more than 40 percent of its value.
Investors pulled away from the stocks that have delivered the best returns in recent years, as concerns about President Trump’s trade war and rising interest rates sent fund managers into assets that are perceived as safer should the economy turn.
- U.S. markets lost nearly $2 trillion in October.
- The biggest technology stocks — most well-known as FANG — were among the hardest hit this month.
- October was the worst month for the S&P 500 since September 2011.
Acampora tells MarketWatch that the action under way in the stock market reminds him of the 1987 crash
“From a technical perspective, the damage that has been done technically to the stock market is much, much worse than people are talking about,” he told MarketWatch in a phone interview on Tuesday.
Acampora cited a break down of so-called FANG stocks—a quartet of technology and internet-related companies that include Facebook Inc. FB, -0.82%Amazon.com Inc. AMZN, +3.72% Netflix Inc. NFLX, +4.68% and Google-parent Alphabet Inc. GOOGL, -0.49% —as the clearest sign that the worm has turned on the bull market.
On Monday, those names, which have been significant catalysts for market sentiment and price moves, shed a combined $120 billion in market value. On top of that, Amazon became the most recent of that group to close in bear-market territory, defined as drop of at least 20% from a recent peak.
“I’ve been a bull for a long, long time and like everyone, I was waiting for a correction but this is something different,” said Acampora, who many chartists refer to as the “godfather” of technical analysis.
“All the leadership is getting crushed,” he said.
- Apple reports fourth-quarter earnings after the closing bell.
- Most big tech companies saw their stocks drop in October, but Apple held up better than the rest.
- The company’s new, more expensive iPhones are expected to boost profits dramatically over the year-ago quarter.