Tech stocks drag markets lower

By Meagan Evans. Published at Sep 4, 2020, in Market Wrap

The S&P/ASX 200 gained 0.81% on Thursday to reach 6,112.60 points, however the futures are pointing to a lower open on the local market this morning with the ASX SPI200 Index down 119 points at 8:30 AEST.

This follows a tough session in the US overnight where the main indexes marked their biggest one-day falls in months led by a selloff in tech stock.

Dragged down by the majors — Facebook, Apple, Microsoft, Alphabet, Amazon.com — the Nasdaq closed down 4.96%, a sharp pull back from record high levels. Microsoft lost 6.2% and Apple was down 8%.

Despite its overnight fall of almost 5%, the Nasdaq is still up more than 60% since early April.

The S&P 500 also pulled back from record highs, dropping 3.51% to 3,455 points. The Dow lost over 800 points for the day.

The number of US jobless claims dropped by more than expected last week but remained considerable elevated. The US monthly payrolls report is due out tonight.

Growth in the US services industry slowed in August, likely as the boost from the reopening of businesses and fiscal stimulus faded.

The VIX volatility index crossed above its 200-day moving average to hit its highest level in weeks.

Continuing a weak couple of days for oil, US oil lost 0.5% to $US41.29/barrel and Brent crude dropped 1% to $44.01/barrel.

Iron ore rose 2.1% to reach $US129.92 a tonne. Supporting iron ore demand is a return to demand for real estate after the COVID crisis began. ANZ report that, particularly in China, housing transactions have picked up strongly on the back of pent-up demand.

Spot gold fell 1.4% to $US1943.58 an ounce

The Aussie dollar is currently buying US$0.7267.

September 21 will see a rebalancing of S&P indexes. Buy now pay later provider Zip Money will be added to the closely watched S&P/ASX200 Index, which fund managers often use as a performance benchmark. Payments providers Sezzle and Splitit will join the S&P/ASX All Technology Index.

The ASX report that the average daily number of trades was down 13% in August compared to August 2019. This marks the second month straight of double digit declines in trading volumes.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X