The Nasdaq took a nosedive in the mid-afternoon after hitting a new record high earlier in the day.
The tech-heavy index fell by as much as 2.8% just before 3 p.m. ET before retracing some of its losses minutes later.
Earlier in the day, Goldman Sachs came up with a new acronym for the big-player stocks in the tech space — “FAAMG” — encompassing Facebook, Amazon, Apple, Microsoft, and Alphabet.
Shares of all five got slammed on Friday, with each falling about 4-5% around 3 p.m. ET.
First up, the scoreboard:
- Dow: 21,244.23, +61.70, (+0.29%)
- S&P 500: 2,430.43, -3.86, (-0.12%)
- Nasdaq: 6,200.90, -121.89, (-1.94%)
- US 10-year yield: 2.209%, +0.015
- WTI Crude: $US45.88, +0.24, +0.53%
1. Goldman came up with a new acronym for the most powerful drives of the S&P 500 and Nasdaq. “While FANG has dominated investor focus, the nature of the acronym has expanded more broadly to encompass mega-cap tech,” Robert Boroujerdi and his colleagues wrote in a note on Friday. “Indeed, the bigger story in our view is FAAMG — Facebook, Amazon, Apple, Microsoft and Alphabet — a group of five stocks which have been the key drivers of both the SPX & NDX returns year-to date.”
2. And then tech stocks got slammed. Nasdaq touched a record high of 6,341 after the opening bell. But then around 3 p.m. ET, Facebook was down by 4%, Apple was down by 4.9%, Microsoft was down by 3.7%, and Alphabet was down by 3.9%. And Nvidia tumbled about 9% after Citron Research called the GPU manufacturer a “casino stock.”
3. Amazon dropped sharply and suddenly — and then quickly recovered. The stock oscillated by about $US35 per share over the course of 3 seconds. Commentators have speculated that the flash crash was either a so-called “fat finger” trade or an automated trade.
4. Canada’s jobs report crushed it. The economy added 54,500 jobs in May, according to the latest data from Statistics Canada. Notably, full-time employment surged by 77,000 last month, and jobs for men ages 25 to 54 rose by 25,000.
5. The US oil-rig count jumped for the 21st week in a row — the longest streak in at least three decades. The oil-rig count rose by eight to 741, the highest level since April 10, 2015, data from Baker Hughes showed. The number of gas rigs rose by three to 185. With miscellaneous rigs unchanged at one, the total rig count rose by 11 to 927.
6. “We have no idea what’s being proposed”: Democratic senator gives impassioned speech on GOP healthcare bill secrecy. Sen. Claire McCaskill, a Democratic senator on the Senate Finance Committee, railed against what she viewed as a secretive process around the healthcare legislation as Republican leaders move toward a vote before the July 4 recess.
7. Tesla is hurtling towards $US400 per share. Tesla has gone from trading at about $US250 per share last year to, as of Friday, trading at $US375. The 13-year-old company is up 22% over the past 30 days alone. Since its 2010 IPO, it’s up almost 1,300%.