Wall Street Close: Tech rout takes S&P and Dow into a tailspin

Dow Jones Industrial Average lost 811.33 points, or 2.79%,
S&P 500 dropped 125.96 points, or 3.52%, to 3,454.88.
Nasdaq Composite fell 598.34 points, or 4.96%, to 11,458.10.

Ross J Burland FXStreet

A rout in US equities, led by overheated tech stocks, dominated Wall Street as the big-tech market darlings suffered sharp declines.

consequently, the tech-laden Nasdaq and the S&P 500 SPX had their worst days since June 11, and the Dow DJI, since June 26.

Unofficially, the Dow Jones Industrial Average lost 811.33 points, or 2.79%, to 28,289.17, the S&P 500 dropped 125.96 points, or 3.52%, to 3,454.88 and the Nasdaq Composite fell 598.34 points, or 4.96%, to 11,458.10.

Thursday's breakdown has signalled a significant trend reversal in a severely extended and overbought market.

S&P 500 movers: NVIDIA Corp (NVDA: NASDAQ) falls sharply from record highs

Technology shares, which registered impressive gains during the latest risk rally, are among the worst performers on Thursday.

At one stage, NVIDIA Corp (NVDA: NASDAQ) shares slump by nearly 9% at $523.37.

Qorvo Inc (QRVO: NASDAQ), Juniper Networks Inc (JNPR: NYSE), Skyworks Solutions Inc (SWKS: NASDAQ), Zebra Technologies Corp (ZBRA: NASDAQ) and Advanced Micro Devices Inc (AMD: NASDAQ) shares are down between 8.9% and 7.9%.

US data mixed ahead of NFP

Initial claims were fewer than expected and the August ISM non-manufacturing index fell back in July.

Initial claims were fewer than expected led by a sharp drop in new orders (56.8 vs 67.7), while business activity fell to 62.4 vs 67.2.

Employment improved but remains below 50, indicating jobs in the non-manufacturing sector are still being lost, albeit at a slower pace. The prices index firmed to 64.1.

Meanwhile, Initial Claims were fewer than expected and continuing claims fell last week (albeit with methodology changes), providing evidence of an ongoing improvement in the US labour market.

Markets are now getting set ahead of the August Non-Farm Payroll data which is due today, Friday. The Reuters poll is calling for1.4 million jobs to have been created and a 9.8% unemployment rate.

S&P 500 levels

S&P 500 Price Analysis: The S&P 500 crashes 2.5% and drops below 3,500

SP 500

Overview
Today last price	3457.5
Today Daily Change	-110.25
Today Daily Change %	-3.09
Today daily open	3567.75

Trends
Daily SMA20	3420.99
Daily SMA50	3285.27
Daily SMA100	3130.18
Daily SMA200	3089.76

Levels
Previous Daily High	3570.5
Previous Daily Low	3537.5
Previous Weekly High	3508.5
Previous Weekly Low	3411.75
Previous Monthly High	3522.75
Previous Monthly Low	3264.25
Daily Fibonacci 38.2%	3557.89
Daily Fibonacci 61.8%	3550.11
Daily Pivot Point S1	3546.67
Daily Pivot Point S2	3525.58
Daily Pivot Point S3	3513.67
Daily Pivot Point R1	3579.67
Daily Pivot Point R2	3591.58
Daily Pivot Point R3	3612.67

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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